Stocks rebound after bank bailout news - 17.3.2023

The Dollar weakening 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, slid 0.3% Thursday as the Department of Labor data showed the number of Americans who sought unemployment benefits over the last week was lower than the forecast while their number declined.

Both EUR/USD and GBP/USD reversed their sliding Thursday. Both euro and Pound are higher against the Dollar currently. USD/JPY reversed its retreating while AUD/USD reversed its climbing yesterday with both the yen and the Australian dollar higher against the Greenback currently.

US stock indexes futures are up currently ahead of the University of Michigan Consumer Sentiment report today at 15:00 CET as the yield on benchmark 10-year Treasury notes ticked down to 3.562%. The three main stock benchmarks recorded sharp gains Thursday in the range of 1.2% to 2.5% as JPMorgan Chase, Morgan Stanley and nine other banking giants announced a $30 billion rescue package for the lender First Republic which was vulnerable to a run by depositors.

European stock market futures are higher today after rebounding Thursday with banking shares leading gains after the Swiss National Bank said it would provide liquidity to Credit Suisse following the selloff the previous day during which Credit Suisse dropped 24%. European Central Bank announced 50 basis points interest rates hike. Asian stock indexes futures are climbing with Japan's Nikkei  leading gains.

Brent is extending gains presently. Prices ended higher on Thursday after reports following a meeting between Saudi Arabia’s energy minister and Russian deputy prime minister in the Saudi capital both countries remain committed to OPEC+'s decision last October to cut production targets by two million barrels per day until the end of 2023. The US oil benchmark West Texas Intermediate (WTI) rose 1.1% and is higher currently. Brent crude added 1% to $74.70 a barrel on Thursday.