Equities waiver ahead of US nonfarm payroll report - 8.12.2023

The Dollar strengthening has resumed 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 0.4% lower on Thursday.

Both EUR/USD and GBP/USD reversed their sliding on Thursday as Halifax Bank of Scotland data showed UK house prices rose for the second month in a row in November. Both euro and Pound are lower against the dollar currently. USD/JPY reversed its advancing yesterday and AUD/USD reversed its retreating with both the yen and the Australian dollar higher against the Greenback currently.

US stock indexes futures are lower currently as the yield on benchmark 10-year Treasury notes edged up to 4.159%. The three main stock benchmarks ended higher in a range of 0.2% to 1.4% led by tech shares on Thursday while data showed the number of Americans filing new claims for unemployment benefits increased less than expected last week to a seasonally adjusted 220,000 for the week.

European stock indexes are higher currently after closing lower on Thursday led by retail shares. Asian stock indexes futures are mixed today with Japan’s Nikkei leading losses while the final report indicated Japan’s third quarter gross domestic product was downgraded to a bigger than initially expected decline in economic growth.

Brent is retracing up currently. The international oil benchmark retreated yesterday after Chinese customs figures showed that crude oil imports in November slipped by 9% compared to the same period last year. Prices fell nearly 4% the previous day as the Energy Information Administration reported a drop in US crude oil inventory last week while US gasoline stocks rose. West Texas Intermediate (WTI) slipped 0.06% but is higher currently. Brent futures slid 0.34% to $74.95 a barrel on Thursday.