Markets mixed amid banking crises concerns - 24.3.2023

The Dollar weakening has resumed 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, added 0.1% Thursday as the Department of Labor data showed the number of Americans who sought unemployment benefits over the last week was lower than the forecast while their number declined.

EUR/USD reversed its climbing Thursday while GBP/USD continued advancing as the Bank of England implemented its widely expected 25 basis point increase. Both euro and Pound are lower against the Dollar currently. AUD/USD joined USD/JPY’s continued retreating yesterday with both the yen and the Australian dollar higher against the Greenback currently.

US stock indexes futures are up currently ahead of the Manufacturing PMI report today at 14:45 CET as the yield on benchmark 10-year Treasury notes ticked down to 3.562%. The three main stock benchmarks recorded gains Thursday in the range of 0.2% to 1.0% after Treasury Secretary Janet Yellen told House subcommittee that the authorities would be “prepared to take additional actions if warranted” to prevent contagion in the financial sector.

European stock market futures are lower today after ending down Thursday with banking shares leading losses. Asian stock indexes futures are mixed with Japan's Nikkei leading gains after data showed consumer inflation eased as expected in February.

Brent is edging up presently after a US air strike on Iran-backed groups spurred concerns that rising tensions in the Middle East could disrupt supply. Prices ended lower on Thursday after reports the Organization of the Petroleum Exporting Countries and 10 independent oil producers including Russia is unlikely to go beyond the production cut of 2 million barrels per day it announced in November3. The US oil benchmark West Texas Intermediate (WTI) fell 1.3% but is higher currently. Brent crude lost 1% to $75.91 a barrel on Thursday.