Chinese stocks lead equities losses ahead of Fed meeting - 15.3.2022

The Dollar strengthening has halted 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, gained 0.06% on Monday.

EUR/USD reversed its retreating Monday while GBP/USD continued sliding as federal statistics agency Destatis reported wholesale prices in Germany continued rising in February. Both euro and Pound are higher against the Dollar currently. USD/JPY continued its advancing yesterday while AUD/USD accelerated its sliding with both the yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are mixed currently with the yield on benchmark 10-year Treasury notes up at 2.145% compared with its US close of 2.14% on Monday. US stock market closed mixed yesterday with tech shares still loss leaders ahead of expected decision by Fed to raise rates for the first time in three years tomorrow. The three main US stock index benchmarks booked daily returns in the range of -2.04% to 0.06% Monday.

European stock indexes are mixed currently after rebounding yesterday led by bank and autos shares ahead of further talks between Russian and Ukrainian negotiators. Asian indexes are retreating today with Hong Kong’s Hang Seng index leading losses as investors worry China’s growth in the first quarter may be much lower than the official target of 5.5% as the National Health Commission reported today 3,602 new confirmed coronavirus cases compared with 1,437 on Monday.

Brent is extending losses currently. Prices slumped yesterday amid optimism as Russian and Ukrainian delegations held a fourth round of talks on Monday by video link. Possibility of lower Chinese demand for oil as the COVID cases rise in the country - increasing the likelihood of shutdowns, is another bearish factor for oil prices. US West Texas Intermediate WTI dropped 5.8% and is lower currently. Brent sank 5.1% to $106.90 a barrel on Monday.