Stocks down ahead of US markets reopening - 18.1.2022

The Dollar strengthening continues 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, gained 0.1% on Monday.

Both EUR/USD and GBP/USD continued their sliding Monday despite UK’s largest property portal Rightmove report the average price of a house coming to market is 7.6% higher than in January 2021. Both Pound and euro are lower against the Dollar currently. USD/JPY reversed its sliding yesterday while AUD/USD continued retreating with both yen and the Australian dollar lower against the Greenback currently as the Bank of Japan raised its inflation outlook but maintained ultra-easy policy.

Futures on three main US stock indexes are down while US 10-year Treasury yields inched up to 1.852% currently. US markets were closed for a holiday on Monday: the three main stock index benchmarks booked daily returns in the range of -0.56% to +0.59% Friday.

European stock indexes are mixed currently after ending higher Monday led by media shares. Asian indexes are mostly in negative territory today with Hang Seng leading losses while Chinese President Xi Jinping warned about global inflation pressures and the resulting effects of higher interest rates.

Brent is edging higher currently ahead of data from the American Petroleum Institute later today. Prices rose yesterday despite reports Libya's total oil output was back to 1.2 million barrels per day (bpd) up from about 900,000 bpd last week owing to a blockade of western oilfields. US West Texas Intermediate WTI added 0.6% and is higher currently. Brent gained 05% to $86.48 a barrel on Monday.