Equities down after mixed Chinese data - 17.7.2023

The Dollar weakening 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, added 0.2% Friday as University of Michigan consumer sentiment preliminary data for July showed US consumer sentiment jumped in early July to an almost two-year high, bolstered by easing inflation and a strong labor market.

EUR/USD ended little changed while GBP/USD reversed its climbing on Friday while federal statistics office Destatis data showed German wholesale prices declined less than expected in June. Both Euro and Pound are higher against the Dollar currently. USD/JPY reversed its sliding on Friday while AUD/USD reversed its advancing with the yen higher against the Greenback currently and the Australian dollar lower.

US stocks indexes futures are mixed currently after closing mixed on Friday while quarterly reports from major banks such as JPMorgan Chase, Wells Fargo and Citigroup showed they got a profit boost from higher rates but US consumers are pulling back on spending and losses are building up in areas such as credit cards and office commercial real estate. The three main US stock benchmarks recorded daily returns in the range from -0.18% to 0.33% on Friday.

European stock indexes futures are down currently after closing marginally lower on Friday with oil and gas stocks posting losses of 2.1%. Asian stock indexes futures are retreating today with Hong Kong’s Hang Seng index leading losses as China reported economic growth of 0.8% in the second quarter, above the 0.5% forecasted, while the annual pace slowed more than expected to 6.3%.

Brent is down currently on global economic slowdown concerns. Oil prices ended sharply lower on Friday on profit taking. The US oil benchmark West Texas Intermediate (WTI) fell 1.9% and is lower currently. Brent lost 1.8% to $79.87 a barrel on Friday. Both benchmarks recorded gains of about 2% for the week.