Stocks pause after another Wall Street gain - 20.7.2023

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, rose 0.3% Wednesday.

Both GBP/USD and EUR/USD accelerated their sliding on Wednesday while the Office for National Statistics reported lower than expected UK inflation data for June. USD/JPY accelerated its climbing yesterday whileAUD/USD accelerated its retreating with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are down currently ahead of unemployment claims and Philly Fed Manufacturing Index reports at 14:30 CET today. The three main US stock indexes edged up on Wednesday in the narrow range from 0.03% to 0.3% as shares of Morgan Stanley, Bank of America and Goldman Sachs rose after earnings reports while US housing data showed privately owned housing units authorized by building permits in June were 3.7% below the revised May rate and 15.3% below the June 2022 rate.

European stock indexes futures are mixed currently after indexes closed up yesterday with oil and gas shares leading gains. Asian stock indexes futures are mostly retreating today with Japan’s Nikkei index leading losses while the People’s Bank of China relaxed a cross-border financing rule, making it easier for domestic firms to raise funds from overseas markets which eased the depreciation pressure on the yuan currency. Chinese stocks are lower amid reports Beijing said it will retaliate if the Biden administration imposes new limits on technology and capital that can flow to China.

Brent is extending losses presently. Prices ended lower yesterday despite Energy Information Administration report US crude inventories fell by below expected 708,000 barrels in the last week to 457.4 million barrels. The US oil benchmark West Texas Intermediate (WTI) futures slid 0.5% and is lower currently. Brent crude slipped 0.2% to $79.46 a barrel on Wednesday.