Markets rebound after Nasdaq dips into correction territory - 20.1.2022

The Dollar retreating 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, slipped 0.1% Wednesday despite Census Bureau reports housing starts resumed growing in December.

Both EUR/USD and GBP/USD reversed their retreating on Wednesday as the European Central Bank reported euro zone current account surplus rose more than expected in November. Both Euro and Pound are higher against the Dollar currently. USD/JPY resumed sliding yesterday while AUD/USD resumed its advancing with the Australian dollar higher against the Greenback currently and yen lower.

The US stock index futures are up currently ahead of the US Labor Department report at 14:30 CET expected to show 227 thousand Americans sought unemployment benefits over the last week. The three main US stock indexes booked losses ranging from 0.96% to 1.15% Wednesday as US Treasury yields rose and benchmark 10-year yield closed at 1.827%.

European stock indexes are mixed currently after ending higher Wednesday with mining shares leading gainers. Asian stock indexes are mostly rising today with Hong Kong’s Hang Seng Index leading gains after China cut its mortgage reference rate for the first time in nearly two years.

Brent is edging up currently. Prices gained Wednesday after a fire on a pipeline from Iraq to Turkey briefly stopped operating. The US oil benchmark West Texas Intermediate (WTI) futures rose 1.8% and is higher currently. Brent crude gained 1.1% to $88.44 a barrel on Wednesday.