Markets down after Wall Street retreat deepened - 26.9.2022

The Dollar strengthening continues 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, rose 0.8% on Friday as US private sector firms registered a smaller than feared fall in output during September.

Both EUR/USD and GBP/USD accelerated its sliding Friday after UK government announced tax cuts while UK and German private sector contraction continued in September. Both Pound and euro are lower against the Dollar currently. USD/JPY reversed its sliding Friday while AUD/USD reversed its climbing with both the yen and Australian dollar lower against the Greenback currently.

Futures on US equity benchmarks are down currently after US stocks closed solidly lower on Friday despite Markit report the composit PMI decline in September was smaller than forecast. The three main US stock benchmarks recorded daily losses ranging from 1.6% to 1.8%, registering fourth straight daily losses.

European stock indexes futures are retreating currently after closing sharply lower on Friday while UK government announced tax cuts for businesses in designated sites, financial services reforms, £60 billion energy package to subsidize gas and electricity bills for households and businesses over the next six months and scraped bankers’ bonus caps. Asian indexes futures are falling today with Hong Kong’s Hang Seng leading losses while the People’s Bank of China said it would raise the foreign exchange risk reserves for financial institutions when purchasing foreign exchange through currency forwards to 20% from the current zero, starting on September 28.

Brent is extending losses today. Prices fell Friday. West Texas Intermediate (WTI) futures sank 5.7% and is lower currently. Brent crude dropped 4.8% to $86.15 a barrel on Friday. The benchmarks lost over 6% on the week.