Stocks mixed ahead of Fed interest rate decision - 18.12.2024

The Dollar strengthening is intact today. 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, ended 0.1% higher on Tuesday.

EUR/USD reversed its advancing while GBP/USD slowed its climbing yesterday while the Ifo institute survey results indicated German business sentiment keeps deteriorating in December. Both euro and Pound are lower against the dollar currently. Both USD/JPY and AUD/USD reversed their climbing on Tuesday with both the yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are up currently with the yield on benchmark 10-year US notes up at 4.387%. Stock indexes ended down on Tuesday as three main stock benchmarks recorded daily losses in the range from -0.6% to -0.3% after the Census Bureau data indicated US retail sales growth accelerated in November.

European stock indexes are higher currently after closing down on Tuesday with banking shares leading losses. Asian indexes futures are mixed today with Hong Kong’s Hang Seng index leading gains amid reports Beijing will raise its budget deficit to 4% from 3% of gross domestic product in 2025- its highest on record, and will also target GDP growth of 5% for a third consecutive year.

Brent is retracing up currently. Prices continued retreating yesterday amid mixed Chinese data: industrial output growth quickened slightly in November in China, the world's second-biggest economy, while retail sales disappointed. The US oil benchmark West Texas Intermediate (WTI) slid 0.9% but is higher currently. Brent lost 1.0% to $73.19 a barrel on Tuesday.