Equities trade mixed after US inflation miss - 3.7.2023

The Dollar strengthening has resumed 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, fell 0.6% Friday.

Both EUR/USD and GBP/USD reversed their sliding on Friday as Eurostat data showed euro-zone inflation fell further in June but the core edged higher. Both Euro and Pound are lower against the Dollar currently. USD/JPY reversed its advancing on Friday while AUD/USD accelerated its advancing with both the yen and the Australian dollar lower against the Greenback currently.

US stocks indexes futures are mixed currently after closing solidly higher on Friday while Bureau of Economic Analysis data showed the US personal consumption expenditures index measure of inflation eased to 3.8% year on year in May, a significant drop from 4.3% in April. The three main US stock benchmarks recorded daily gains in the range from 0.8% to 1.5% on Friday.

European stock indexes futures are mixed currently after closing higher on Friday with several sectors including banks, chemicals, insurance and retail stocks posting gains of more than 1%. Asian stock indexes futures are advancing today with Hong Kong’s Hang Seng index leading gains as a private survey showed that China’s manufacturing sector grew more than expected in June.

Brent is down currently on global economic slowdown concerns. Oil prices ended higher on Friday while energy services firm Baker Hughes reported US energy firms this week cut the number of active oil and natural gas rigs operating for a ninth week in a row for the first time since July 2020. The US oil benchmark West Texas Intermediate (WTI) rose 1.1% and is higher currently. Brent gained 0.8% to $74.90 a barrel on Friday. Both benchmarks recorded quarterly losses for the three months ended in June.