Equities bounce ahead of US inflation data - 30.8.2024

The Dollar strengthening has stalled 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 0.2% higher on Thursday.

Both EUR/USD and GBP/USD slowed their sliding yesterday while federal statistics office Destatis reported German consumer inflation slowed more than expected in August. Both euro and Pound are higher against the dollar currently. AUD/USD joined USD/JPY’s persistent advancing on Thursday with both the yen and Australian dollar higher against the Greenback currently.

US stock index futures are higher currently with the yield on benchmark 10-year Treasury notes down at 3.865%. The three main stock benchmarks ended mixed on Thursday recording daily losses in a range from -0.2% to 0.6% as Bureau of Economic Analysis data indicated the US economy grew at an annual rate of 3% in second quarter - revised upwards from 2.8%.

European indexes futures are rising today after stock indexes closed higher on Thursday while tech shares led gainers. Asian stock indexes futures are mostly rising today with Hong Kong’s Hang Seng leading gains buoyed by bargain buying.

Brent is extending gains currently. Prices ended over 1% higher on Thursday amid reports Iraq plans to reduce oil output in September to between 3.85 million and 3.9 million barrels per day to compensate for producing over the quota agreed with the Organization of the Petroleum Exporting Countries and its allies. West Texas Intermediate (WTI) futures rose 1.9% and are higher currently. Brent futures gained 1.6% to $79.94 a barrel on Thursday.