Equities mixed after strong US jobs data - 5.12.2022

The Dollar weakening 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, slipped 0.1% Friday despite the Bureau of Labor Statistics report the US economy added above-expected 263,000 jobs in November.

Both EUR/USD and GBP/USD slowed their climbing on Friday as the federal statistics office Destatis reported Germany’s trade surplus increased in October as imports fell by more than exports. Both Pound and euro are higher against the Dollar currently. USD/JPY slowed its retreating Friday while AUD/USD reversed its climbing with the yen lower against the Greenback currently and Australian dollar higher.

Futures on US equity benchmarks are down currently after US stocks closed mixed on Friday as stronger than expected November payrolls report sparked concerns the Fed may need to hike interest rates another 75-basis points at December 14 meeting. The three main US stock benchmarks recorded daily returns ranging from -0.2% to 0.1%.

European stock indexes futures are mixed currently after stocks closed lower on Friday with retail shares leading gains. Asian indexes futures are mostly rising today after more Chinese cities announced an easing of coronavirus curbs on Sunday. Chinese stocks are rising led by Hong Kong’s Hang Seng index amid reports Beijing might lower the threat classification for COVID-19.

Brent is extending losses today as the Group of Seven price cap on Russian seaborne oil came into force and OPEC held output steady while reports more Chinese cities began relaxing anti-COVID measures provide support. Kremlin said it won't accept oil price cap, will only sell at market price and is preparing response. Prices fell Friday. West Texas Intermediate (WTI) futures lost 1.5% and is lower currently. Brent crude dropped 1.5% to $85.57 a barrel on Friday. Both prices posted their first weekly gains after three consecutive weeks of drops.