Global stocks subdued after Wall Street advance - 18.7.2023

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% on Monday.

EUR/USD resumed its advancing while GBP/USD slowed its sliding on Monday while Rightmove report showed House Price Index (HPI) reflecting the average price of UK property coming on to the market fell marginally this month. Both euro and Pound are higher against the dollar currently. USD/JPY reversed its climbing while AUD/USD slowed its retreating with both the yen and Australian dollar higher against the Greenback currently and lower.

Futures on three main US stock indexes are down currently with the yield on benchmark 10-year Treasury notes down at 3.791%. US stocks rose on Monday, with three main stock benchmarks recording daily gains in the range from 0.2% to 0.9% led by financial and technology shares as investors await the next round of quarterly results this week including from major banks such as Bank of America, Morgan Stanley and Goldman Sachs.

European stock indexes futures are mixed currently after closing lower on Monday with household goods shares leading losses. Asian indexes futures are mixed today with Hong Kong’s Hang Seng index leading losses while reports that the People’s Bank of China could cut its key interest rates and bank reserve requirements in the third quarter to unlock more liquidity limited losses.

Brent is advancing currently. Prices ended lower on Monday after weaker than expected Chinese reports. Data showed that the growth in China’s gross domestic product slowed in the second quarter. In wheat market a deal allowing the safe Black Sea export of Ukraine's grain for the past year expired on Monday after Russia's announcement that it was withdrawing from the pact. Moscow said that Russia was quitting the pact because its demands to improve its own grain and fertilizer exports had not been met and not enough grain has reached poor countries. US West Texas Intermediate WTI lost 1.7% but is higher currently. Brent fell 1.7% to $78.50 a barrel on Monday.