Equities mixed after Wall Street fell following strong sales report - 16.8.2023

The Dollar strengthening has halted 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% on Tuesday.

GBP/USD reversed its retreating yesterday while EUR/USD ended flat after the Office for National Statistics data showed UK wages grew at a record rate in July. Both euro and Pound are higher against the dollar currently. USD/JPY halted its climbing Tuesday while AUD/USD accelerated its sliding with both the yen and Australian dollar higher against the Greenback currently.

Futures on three main US stock indexes are up currently as the yield on benchmark 10-year US notes has edged down to 4.203% currently. Stock indexes ended down on Tuesday with three main stock benchmarks recording daily losses in the range from -1.16% to -1.02% after stronger than expected July retail sales data spurred worries interest rates could stay higher for longer. Bank shares dropped on a report ratings agency Fitch could downgrade multiple banks including JPMorgan if the agency further cuts its assessment of the operating environment for the industry. SP 500 banking index hit a one-month low, down 2.75%.

European stock indexes are mixed currently after a bearish session on Tuesday with basic resources leading losses. Asian indexes futures are retreating today with Hong Kong’s Hang Seng index leading losses as shares of China’s biggest property developer Country Garden Holdings fell 2.5% after it forecast a massive loss for the first half of 2023 and suspended trading in 11 of its onshore bonds.

Brent is little changed currently. Oil prices fell over 1% on Tuesday before American Petroleum Institute report late Tuesday US crude stocks dropped by about 6.2 million barrels last week. The Energy Information Administration will release its US inventory data at 16:30 CET today. The US oil benchmark West Texas Intermediate (WTI) fell 1.8% and is lower today. Brent lost 1.5% to $84.89 a barrel.