Equities rebound as rate fears subside - 29.9.2023

The Dollar weakening continues 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, lost 0.3% on Thursday while 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 rose.

Both EUR/USD and GBP/USD reversed their sliding on Thursday despite Germany’s federal statistics office Destatis reporting the national inflation rate fell more than expected in September. Both euro and Pound are higher against the dollar currently. USD/JPY reversed its advancing while AUD/USD reversed its sliding yesterday with both the yen and the Australian dollar higher against the Greenback currently.

US stock indexes futures are up currently as the yield on benchmark 10-year Treasury notes edged down to 4.592%. The three main stock benchmarks ended higher on Thursday in the range of 0.4% to 0.5% as investors watch efforts by US lawmakers to avert a government shutdown as Congress remains in a deadlock.

European stock indexes are higher currently after closing up on Thursday led by basic resources stocks. Asian stock indexes futures are mostly higher today with Hong Kong’s Hang Seng leading gains as tech stocks rebounded while data showed inflation in Tokyo grew less than expected in September after unemployment unexpectedly rose in August.

Brent is retracing higher currently. Prices ended lower yesterday. The US oil benchmark West Texas Intermediate (WTI) fell 2.1% but is higher currently. Brent December futures lost 1.23% to $93.10 a barrel on Thursday.