Equities mixed after small China rate cut - 21.8.2023

The Dollar weakening is intact 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, ended marginally lower at 103.392 on Friday.

GBP/USD reversed its advancing on Friday while EUR/USD reversed its sliding as Office for National Statistics reported UK retail sales fell more than expected in July, attributing the decline primarily to persistent poor weather. Both euro and Pound are higher against the Dollar currently. USD/JPY continued its sliding on Friday while AUD/USD reversed its retreating with the yen lower against the Greenback currently and the Australian dollar little changed.

US stocks indexes futures are up currently after closing mixed on Friday. The three main US stock benchmarks recorded daily returns in the range from -0.2% to 0.1% on Friday as tech-heavy Nasdaq Composite Index notched its fourth consecutive decline.

European stock indexes futures are higher currently after closing lower on Friday with retail shares leading losses. Asian stock indexes futures are mixed today with Japan's Nikkei leading gains while China's central bank cut its one-year lending rate by 10 basis points and left its five-year rate unchanged when 15 basis points cuts to both were widely expected.

Brent is up currently. Oil prices ended higher on Friday after energy services firm Baker Hughes reported the total count of active US oil rigs was down last week, the sixth weekly decline in a row. Lower active US rig count points to anticipated lower US future output. The US oil benchmark West Texas Intermediate (WTI) rose 1.1% and is higher currently. Brent gained 0.8% to $84.80 a barrel on Friday. Both benchmarks recorded about 2% drop for the week though.