Stocks mixed after soft Chinese inflation data - 11.5.2023

The Dollar weakening has reversed 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, lost 0.2% Wednesday.

Both GBP/USD and EUR/USD reversed their retreating on Wednesday. Both euro and Pound are lower against the Dollar currently. USD/JPY reversed its advancing yesterday and AUD/USD reversed its sliding with both the yen and the Australian dollar lower against the Greenback currently.

The US stock index futures are up currently ahead of unemployment claims and producer prices reports at 14:30 CET today. The three main US stock indexes ended mixed on Wednesday recording daily returns in the range from -0.10 to 1.04% as Consumer Price Index (CPI) rose 4.9% in April from a year ago, compared with expectations of a 5%, supporting bets that the Federal Reserve’s interest rate hiking cycle is close to an end.

European stock indexes futures are higher currently after indexes closed lower yesterday with food and beverages shares leading losses. Investors will be watching closely what Bank of England policy makers will say today at press conference after the central bank hikes rates 25 basis points as widely expected. Asian stock indexes futures are mixed today with Hong Kong’s Hang Seng Index leading losses as data showed China's consumer prices rose at a slower pace: consumer price index (CPI) in April rose 0.1% over year, the lowest rate since February 2021, while the producer price index (PPI) fell at the fastest rate since May 2020.

Brent is edging up presently. Prices ended lower yesterday after Energy Information Administration report US crude inventories rose by 3 million barrels last week while gasoline inventories fell by above expected 3.2 million barrels. The US oil benchmark West Texas Intermediate (WTI) futures fell 1.6% but is higher currently. Brent crude lost 1.3% to $76.41 a barrel on Wednesday.