Markets subdued after Wall Street extends pullback - 7.9.2023

The Dollar strengthening is intact 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% Wednesday.

EUR/USD paused its sliding on Wednesday while GBP/USD continued its retreating while federal statistics office Destatis data indicated new manufacturing orders in Germany were down 10.5% over year in July. Both Pound and euro are lower against the dollar currently. USD/JPY reversed its advancing yesterday while AUD/USD reversed its sliding with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are lower currently ahead of US unemployment claims data at 14:30 CET today. The three main US stock indexes extended losses on Wednesday in the range from 0.6% to 1.1% as ISM Services PMI data indicated acceleration in US services sector expansion in August while the Federal Reserve’s “beige book” described US growth as “modest” over the summer .

European stock indexes futures are down currently after indexes closed lower yesterday led by household goods stocks. Asian stock indexes futures are mostly falling today led by Hong Kong’s Hang Seng Index with Chinese stocks down on renewed US-China fears after suggestions from top Republican lawmakers that the US should end all technology exports to China’s Huawei and Semiconductor Manufacturing International Corp following unveiling of an advanced smartphone by Huawei.

Brent is edging lower presently. Prices ended higher yesterday. The Energy Information Administration will release its US inventory data today at 17:00 CET. American Petroleum Institute figures released after settlement yesterday projected 5.5 million barrels draw in US crude inventories in the week ending September 1. The US oil benchmark West Texas Intermediate (WTI) futures gained 0.9% but is lower currently. Brent crude added 0.6% to $9060 a barrel on Wednesday.