Markets advance after Wall Street rally - 23.1.2023

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, slipped 0.1% Friday despite the National Association of Realtors report US existing-home sales retreated for the eleventh consecutive month in December.

Both EUR/USD and GBP/USD slowed their advancing on Friday while the Office of National Statistics reported UK retail sales unexpectedly declined 1% on the month in December. Both Pound and euro are higher against the Dollar currently. Both USD/JPY and AUD/USD reversed their sliding Friday with the yen lower against the Greenback currently and the Australian dollar higher still.

US stocks are edging higher currently after closing sharply higher on Friday supported also by Fed Governor Christopher Waller’s comment the central bank may be “pretty close” to a point where rates are “sufficiently restrictive” to cool inflation. The three main US stock benchmarks recorded daily gains ranging from 1.0% to 2.7% on Friday. 

European stock indexes futures are mixed currently after stocks closed higher on Friday led by travel and leisure shares. Asian indexes futures are higher today in thin trading with mainland China trading closed until January 30 for Lunar New Year celebrations.

Brent is edging lower currently. Prices ended higher on Friday supported by expectations of higher demand after China lifted COVID-19 restrictions. West Texas Intermediate (WTI) futures settled up 1.2% but is lower currently. Brent rose 1.7% to $87.63. Brent advanced  2.8% on the week and the US benchmark WTI notched a 1.8% gain.