Markets pull back as China demands Chengdu consulate closure - 24.7.2020

The Dollar weakening continues today ahead of flash Purchasing Managers' Index (PMI) report by Markit at 17:45 CET today. 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, slid 0.1% Thursday as Labor Department data showed 1.42 million Americans filed for first-time benefits, a rise of 109,000. Both GBP/USD and EUR/USD continued their climbing yesterday despite data showing falling euro zone consumer confidence for June. GBP/USD has reversed its climbing currently. Both AUD/USD and USD/JPY reversed their climbing yesterday and both pairs are lower currently.

Futures on three main US stock indexes are lower currently after ending lower Thursday. Verizon, American Express and Honeywell are among the companies reporting quarterly earnings today. The three main US stock indexes recorded losses ranging 1.2% to 2.3% Thursday led by technology shares as Apple and Microsoft shed more than 4%. European stock indexes are sharply lower today after ending marginally higher Thursday. Asian indexes are all sharply lower today led by Shanghai Composite as China ordered the US consulate in the western city of Chengdu closed after the US closure of the Chinese consulate in Houston.

Brent is edging lower today. Oil prices fell yesterday after the Energy Information Administration report Wednesday showing a weekly fall of 98,000 barrels per day in implied demand for gasoline. The US oil benchmark West Texas Intermediate (WTI) futures ended lower yesterday: September WTI fell 2% and is lower currently. September Brent crude closed 2.2% lower at $43.31 a barrel on Thursday.