Equities mixed as bank shares remain under pressure - 16.3.2023

The Dollar strengthening has halted currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, jumped 0.9% Wednesday.

EUR/USD reversed its advancing while GBP/USD accelerated its retreating on Wednesday despite the statistics office Eurostat report euro zone industrial output resumed growing in January. Euro and Pound are higher against the Dollar currently. Both USD/JPY and AUD/USD reversed their climbing yesterday with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are higher currently ahead of Department of Labor report on unemployment claims scheduled for 14:30 CET today. The three main US stock indexes ended mixed on Wednesday recording daily returns in the range from -0.9% to 0.05% after data like unexpected decline in wholesale prices and contraction in retail sales suggested a slowing US economy.

European stock indexes futures are rebounding currently after closing sharply lower yesterday with bank stocks leading losses as Credit Suisse fell 24% following announcement by its biggest lender Saudi National Bank it would not provide it with further financial support. Asian stock indexes futures are mostly lower today with Australia’s S&P/ASX 200 All Ordinaries index leading losses dragged by the country’s big four bank stocks.

Brent is edging down presently. Prices ended sharply lower yesterday after Energy Information Administration report US crude inventories rose by above expected 1.6 million barrels in the last week. The US oil benchmark West Texas Intermediate (WTI) futures plunged 5.2% and is lower currently. Brent crude lost 4.9% to $73.69 a barrel on Wednesday.