Wall Street set to open higher after sharp drop - 10.5.2022

The Dollar strengthening has paused 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.

EUR/USD continued climbing Monday and GBP/USD continued its sliding while Sentix reported an all-time low in economic expectations for Germany as the overall Eurozone sentiment index declined more than expected. Both are up currently. AUD/USD accelerated its retreating yesterday while USD/JPY reversed its advancing with both the yen and Australian dollar higher against the Greenback currently.

Futures on three main US stock indexes are up currently with the yield on benchmark 10-year Treasury notes inching down to 3.04%. US stock market extended the selloff yesterday as fears of slowdown resurfaced after data from China showed China’s export growth slowed to its weakest in almost two years. The three main US stock index benchmarks booked daily losses in the range of 2.0% to 4.3% Monday led by mega-cap growth shares.

European stock indexes are up currently after closing solidly lower Monday led by travel shares. Asian indexes are mixed today with Hong Kong’s Hang Seng index leading losses while Japanese and Australian shares pared earlier losses.

Brent is edging lower currently. Prices tumbled yesterday amid reports of tighter and wider COVID-19 lockdowns in China. Data showed crude oil imports by China in the first four months of 2022 fell 4.8% from a year ago. US West Texas Intermediate WTI sank 6.1% and is lower currently. Brent dropped 5.7% to $105.94 a barrel on Monday.