Stocks retreat ahead of US markets reopening - 5.9.2023

The Dollar weakening has reversed 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 0.2% on Monday.

Both GBP/USD and EUR/USD reversed their sliding on Monday as German trade data showed a below expected 0.9% fall in exports in July. Both euro and Pound are lower against the dollar currently. AUD/USD joined USD/JPY’s slowed advancing yesterday with both the yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are down currently with the yield on benchmark 10-year Treasury notes up at 4.214%. US markets were closed on Monday for Labor Day holiday after data showed unemployment ticked up to 3.8% in August while average hourly wages rose less than expected. The three main stock benchmarks recorded daily returns in the range from -002% to 0.33% on Friday.

European stock indexes futures are lower currently after closing marginally lower on Monday while basic resources led gains. Asian indexes futures are falling mostly today with Hong Kong’s Hang Seng index leading losses as Caixin report indicated China's services activity expanded at the slowest pace in eight months in August while the Reserve Bank of Australia held interest rate unchanged at 4.1% as 10-year Japanese bond yields ticked up to 0.656%.

Brent is retracing down currently after a private sector survey showed that China's services activity expanded at the slowest pace in eight months in August. Prices ended up on Monday. US West Texas Intermediate WTI added 0.5% but is lower currently. Brent rose 0.5% to $89.00 a barrel on Monday.