Markets subdued on persisting high interest rates - 28.9.2023

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, rose 0.3% Wednesday.

Both GBP/USD and EUR/USD continued retreating on Wednesday as the market research company GfK revised downward its preliminary estimate for German consumer sentiment. Both euro and Pound are higher against the dollar currently. USD/JPY accelerated its advancing yesterday while AUD/USD accelerated its sliding with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are mixed currently ahead of US unemployment claims data at 14:30 CET today. The three main US stock indexes ended mixed on Wednesday in the range from -0.2% to 0.2% as new orders for durable goods rose in August from a month earlier to $284.7 billion when a decline was expected.

European stock indexes futures are mixed currently after indexes closed marginally lower yesterday with oil stocks leading gains. Asian stock indexes futures are in red today with Hong Kong’s Hang Seng Index leading losses after trading in shares of real estate developer China Evergrande was suspended before the week-long Autumn festival holiday.

Brent is edging higher presently. Prices ended at highest level in 2023 yesterday after the Energy Information Administration data showed US crude inventories fell by above expected by 2.2 million barrels last week to 416.3 million barrels. The US oil benchmark West Texas Intermediate (WTI) futures rallied 3.6% and is higher currently. Brent crude rose 2.8% to $96.55 a barrel on Wednesday.