Stocks mixed as Bank of Japan keeps negative rates - 22.9.2023

The Dollar strengthening continues today. 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, gained 0.1% on Thursday while 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 continued their sliding on Thursday as the Bank of England paused its hiking cycle, keeping the policy rate at 5.25%. Both euro and Pound are lower against the dollar currently. USD/JPY joined AUD/USD’s accelerated sliding yesterday with the yen lower against the Greenback currently and the Australian dollar higher.

US stock indexes futures are up currently as the yield on benchmark 10-year Treasury notes edged up to 4.495%. The three main stock benchmarks ended solidly lower on Thursday in the range of -1.8% to -1.1% on worries about a potential United States government shutdown as key spending Bills in Congress remained blocked so far.

European stock indexes are mixed currently after closing lower on Thursday led by travel and leisure stocks. Asian stock indexes futures are mostly higher today with Hong Kong’s Hang Seng leading gains while the Bank of Japan held interest rates at negative levels and said that it will continue with its current pace of asset purchases and yield curve control to stimulate the economy.

Brent is inching higher currently. Prices ended lower yesterday despite a Russian temporary ban on exports of gasoline and diesel to all countries outside a circle of four ex-Soviet states aimed to stabilize the domestic fuel market. The US oil benchmark West Texas Intermediate (WTI) lost 3 cents but is higher currently. Brent slipped 0.24% to $93.30 a barrel on Thursday.