Equities pause after weak China trade data - 8.8.2023

The Dollar strengthening 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, added 0.1% on Monday.

Both EUR/USD and GBP/USD reversed their advancing on Monday while Sentix Investor Confidence survey showed the Sentix economic index for the euro zone stopped its declining while the overall index for Germany fell for the fourth time in a row. Both euro and Pound are lower against the dollar currently. USD/JPY reversed its retreating while AUD/USD continued its climbing with both the yen and Australian dollar lower against the Greenback currently.

Futures on three main US stock indexes are down currently with the yield on benchmark 10-year Treasury notes down at 4.05%. US stocks reversed their retreating Monday, with three main stock benchmarks recording daily gains in the range from 0.6% to 1.16% while Fed Governor Michelle Bowman said additional interest rate hikes will likely be needed this year to lower inflation to the 2 per cent target.

European stock indexes futures are down currently after closing mixed on Monday with mining stocks leading losses. Asian indexes futures are mixed today with Hong Kong’s Hang Seng index leading losses while trade data showed China's imports and exports fell in July more than forecasts.

Brent is extending losses currently. Prices fell over 1% on Monday as Polish pipeline operator PERN said it expects to resume flows on Tuesday on a pipeline that transports oil to Europe, easing worries of supply constrains. US West Texas Intermediate WTI lost 1.06% and is lower currently. Brent fell 1.04% to $85.34 a barrel on Monday.