Markets subdued on middle East conflict - 9.10.2023

The Dollar strengthening has resumed 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, ended 0.2% lower on Friday.

EUR/USD and GBP/USD continued their advancing on Friday as federal statistics office Destatis reported new orders in manufacturing sector in Germany rose more than expected in August. Both euro and Pound are lower against the Dollar currently. USD/JPY resumed its climbing on Friday and AUD/USD slowed its advancing with the yen higher against the Greenback currently and the Australian dollar lower.

US stocks indexes futures are down currently after closing solidly higher on Friday. The three main US stock benchmarks recorded daily gains in the range from 0.9% to 1.6% on Friday as Labor Department data showed US economy added much more than expected new jobs in September while average hourly earnings remained stagnant.

European stock indexes futures are mixed currently after closing marginally higher on Friday led by retail stocks. Asian stock indexes futures are mostly down today with Hong Kong’s Hang Seng index defying regional trend as China also returns from holiday this week while markets in Japan are closed for a holiday.

Brent is rebounding currently on escalating Middle East tension spurring concerns oil supplies from Iran might be disrupted. Oil prices rebounded on Friday while Russia announced it had lifted its ban on diesel exports for supplies delivered to ports by pipeline and companies required to sell at least 50% of their diesel production to the domestic market. And the energy services firm Baker Hughes reported the total count of active US oil rigs fell by five to 497 last week, the lowest since February 2022. The US oil benchmark West Texas Intermediate (WTI) added 0.6% and is higher currently. Brent gained 0.6% to $84.58 a barrel on Friday. However Brent and WTI lost about 11% and 8% for the week respectively.