Stock indexes diverge after back to back Wall Street losses - 2.12.2021

The Dollar is little changed 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 0.1% Wednesday as the Institute for Supply Management data showed the economic activity in the manufacturing sector grew in November.

EUR/USD joined GBP/USD’s continued sliding on Wednesday as the final manufacturing purchasing manager’s index (PMI) reading for the euro zone was downgraded from the flash estimate. Pound is higher currently against the Dollar while euro is lower still. USD/JPY continued declining Wednesday while AUD/USD reversed its climbing with both the Australian dollar and yen lower against the Greenback currently.

The US stock index futures are rising currently after posting solid losses Wednesday following Fed chair Jerome Powell’s comment policymakers needed to be ready to respond to the possibility inflation may not recede in the second half of next year as expected. The three main US stock indexes booked losses ranging from 1.2% to 1.8% after a morning rally faded.

European stock indexes are mixed currently after ending higher Wednesday led by autos and travel and leisure shares. Asian stock indexes are mixed today with Nikkei leading losses as Japanese central bank warned of economic pain as countries respond with tighter curbs.

Brent is edging up currently ahead of meeting today by the Organization of the Petroleum Exporting Countries and its allies, where they will likely decide whether to release more oil into the market as previously planned or restrain supply. Prices fell Wednesday after the US Energy Information Administration report domestic crude stockpile fell by 910 thousand barrels last week while analysts expected a draw of 1.2 million barrels. The US oil benchmark West Texas Intermediate (WTI) futures slid 0.14% and is lower currently. Brent crude slipped 0.07% to $82.25 a barrel on Wednesday.