Stocks retreat continues after hawkish Fed minutes - 6.7.2023

The Dollar strengthening has paused 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, added 0.4% Wednesday.

GBP/USD joined EUR/USD’s slowed retreating on Wednesday while S&P Global data showed euro zone private business output contracted in June. Both euro and Pound are higher against the Dollar currently. USD/JPY reversed its retreating yesterday whileAUD/USD reversed its climbing with both the yen lower and the Australian dollar higher against the Greenback currently.

The US stock index futures are down currently ahead of unemployment claims report at 14:30 CET today. The three main US stock indexes ended lower on Wednesday in the narrow range from -0.4% to -0.2% as Federal Reserve’s June meeting minutes revealed that nearly all of the members of the banks reate setting committee supported more rate hikes in the coming months.

European stock indexes futures are lower currently after indexes closed down yesterday with insurance and utilities leading losses. Asian stock indexes futures are in red today with Hong Kong’s Hang Seng Index leading losses while Chinese exporters of chipmaking materials, along with rare earth miners, saw a share price rally after China imposed curbs on the export of key chipmaking materials to the US.

Brent is edging down presently. Prices ended higher yesterday while American Petroleum Institute data released after the Wednesday settlement showed US crude stocks fell by about 4.4 million barrels last week, with gasoline and distillate inventories rising. The US oil benchmark West Texas Intermediate (WTI) futures surged 2.9% but is lower currently. Brent crude rose 0.5% to $76.65 a barrel on Wednesday.