Futures on US indexes rise ahead of President Trump’s planned announcement on reopening guidelines - 16.4.2020

The dollar reversed weakening yesterday despite a bigger than expected 8.7% drop in retail sales in March, and the Federal Reserve report US capacities utilization declined to lower than expected 72.7% in March from 77%, while the industrial production fell 5.4% - the largest drop since 1946. The ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, continues rising currently. The EUR/USD, GBP/USD and AUD/USD reversed climbing yesterday and are lower currently. USD/JPY reversed declining and is rising currently.

Stock indexes in US and Europe fell yesterday as worse than expected earnings reports and economic data undermined investors’ risk appetite. The three main US stock indexes suffered daily losses ranging from 1.4% to 2.2%. Energy and materials shares were the loss leaders, as those sectors dropped more than 4% each. European stock index losses were bigger: from 3% for Stoxx 600 to 3.9% for DAX 30. While Spain reopened some construction sites and manufacturing industries Monday and Italy allowed some parts of the country to reopen such bookshops as well as shops selling children’s clothes, Denmark planned to reopen elementary schools and kindergartens on Wednesday. UK and France are considering extending the lockdown measures into early May. Asian indexes are mostly lower today while Shanghai Composite defies the trend gaining 0.3% as China has reopened the economy after declaring victory over the outbreak.

Brent is rebounding today after report Wednesday on 12th consecutive weekly rise in US crude stockpiles. The Energy Information Administration reported a rise of bigger than expected 19.2 million barrels in domestic crude oil supplies last week. At the same time the International Energy Agency warned of a drop in demand of 9.3 million barrels a day this year. That volume is equivalent to a decade’s worth of growth. June Brent fell 6.6% to $27.69 on Wednesday.