Stocks subdued ahead of FED’s May meeting - 2.5.2023

The Dollar strengthening has stalled 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 0.4% on Monday.

GBP/USD joined in EUR/USD’s accelerated sliding on Monday. Both Pound and euro are higher against the dollar currently. AUD/USD joined USD/JPY’s slowed advancing yesterday with the yen lower against the Greenback currently and Australian dollar sharply higher after a surprise 25 basis point hike by Australia's central bank.

Futures on three main US stock indexes are mixed currently with the yield on benchmark 10-year Treasury notes down at 3.555%. US stocks closed lower on Monday, with three main stock benchmarks recording daily losses in the narrow range from -0.14% to -0.04% as JPMorgan Chase acquired the insolvent First Republic Bank and the Institute for Supply Management report indicated US manufacturing activity contracted for the fifth month in a row.

European stock indexes futures are mixed currently ahead of markets reopening following Labor Day holiday on Monday. Asian indexes futures are mostly lower today with Australia’s All Ordinaries ASX 200 Index leading losses and mainland China markets closed.

Brent is gaining currently. Prices ended lower on Monday as voluntary output cuts of around 1.16 million barrels per day by members of the Organization of the Petroleum Exporting Countries and major producers including Russia, a group known as OPEC+, take effect from May. US West Texas Intermediate WTI edged down 1.5% but is higher currently. Brent gained 1.3% to $78.45 a barrel on Monday.