Markets mixed after FED hikes rates tenth time - 4.5.2023

Senior Analyst

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Todays’ Market Summary

The Dollar weakening is intact
The US stock index futures are up currently
Gold prices are edging lower

Top daily news

Global stocks are trading mixed currently ahead of European Central Bank interest rate decision at 14:15 CET today. Wall Street ended down on Wednesday after Fed raised rates by another quarter point to a target range of 5% to 5.25%. Apple shares slid 0.65%, Tesla’s shares added 0.19% on Wednesday outperforming the market as the EV maker resumed taking orders for its Model 3 long-range vehicle in the United States.

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Forex news

The Dollar weakening is intact 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, lost 0.6% Wednesday.

GBP/USD joined EUR/USD’s accelerated climbing on Wednesday as Eurostat reported a decline in unemployment rate for March in euro area when no change at 6.6% was expected. Both euro and Pound are higher against the Dollar currently. USD/JPY accelerated its retreating and AUD/USD slowed its advancing yesterday with both the yen and the Australian dollar higher against the Greenback currently.

Stock Market news

The US stock index futures are up currently ahead of Labor Department unemployment claims report at 14:30 CET today. The three main US stock indexes ended lower on Wednesday recording daily losses in the range from 0.46 to 0.8% as Fed chair Powell said that it may be too soon to cut rates while shares of US regional banks tumbled in after-market trading after reports that PacWest Bancorp has been weighing a range of strategic options, including a sale.

European stock indexes futures are lower currently after indexes closed higher yesterday with mining shares leading gains. Investors will be watching closely what European Central Bank policy makers will say today at press conference after the central bank hikes rates 25 basis points as widely expected. Asian stock indexes futures are mixed today with Hong Kong’s Hang Seng Index leading gains despite China Caixin Manufacturing PMI declining from 50.0 to 49.5 indicating China’s manufacturing sector unexpectedly shrank in April due to slow demand. Japanese markets are closed today for Greenery Day.

Commodity Market news

Brent is edging up presently after Iran seized a second oil tanker in a week on Wednesday in Gulf waters, and the US State Department called for its release. Prices ended lower yesterday despite Energy Information Administration report US crude inventories fell by a bigger than expected 1.3 million barrels last week while gasoline inventories rose unexpectedly by 1.7 million barrels instead of a decline. The US oil benchmark West Texas Intermediate (WTI) futures fell 4.3% but is higher currently. Brent crude lost 4% to $72.33 a barrel on Wednesday.