Equities subdued ahead of US inflation data - 26.1.2024

The Dollar strengthening is intact 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, ended 0.3% higher on Thursday despite Department of Labor data showing the number of Americans filing new claims for unemployment benefits rose last week more than expected.

Both GBP/USD and EUR/USD reversed their climbing on Thursday as the European Central Bank kept the euro zone deposit rate at 4% for the third straight meeting as was widely expeced. Both euro and Pound are lower against the dollar currently. Both USD/JPY and AUD/USD reversed their sliding yesterday with both the yen and the Australian dollar lower against the Greenback currently.

US stock indexes futures are down currently as the yield on benchmark 10-year Treasury notes edged down to 4.099%. The three main stock benchmarks ended higher on Thursday in a range of 0.2% to 0.6% after US economic growth came in at above expected 3.3%in the fourth quarter.

European stock indexes are mixed currently after closing up on Thursday led by technology shares. Asian stock indexes futures are lower today with Hong Kong’s Hang Seng index leading losses dragged by tech stocks.

Brent is retracing down currently. Prices jumped yesterday after Commerce Department report US economy grew at a faster than anticipated rate in the fourth quarter of the last year. West Texas Intermediate (WTI) rallied 3% but is lower currently. Brent futures rose 3% to $77.36 a barrel on Thursday.