Global equities mixed as China approves national security bill for Hong Kong

The Dollar strengthening has resumed today ahead of report expected to show over 42 million Americans likely sought unemployment benefits over the last ten weeks. 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, lost 0.1% Wednesday as Federal Reserve’s “Beige Book” report Wednesday said that economic activity through May 18 fell sharply in most of its 12 districts. EUR/USD continued climbing yesterday while GBP/USD slipped as European Commission unveiled a plan to borrow 750 billion euros including 500 billion euros in grants and 250 billion in loans aiming to disburse them via the European budget to be repaid between 2028 and 2058. Both pairs are higher currently. AUD/USD turned lower yesterday while USD/JPY turned higher with the dynamics intact for the two pairs currently.

Futures on three main US stock indexes are mixed after a surge on Wednesday. The earnings season is drawing to an end with companies including Merck, E.ON and Dell Technologies scheduled to report quarterly results today. Stock indexes in US ended sharply higher on Wednesday while Boeing announced it was laying off nearly 7,000 workers: the three main US stock indexes recorded gains ranging from 0.8% to 2.2% led by financial shares. European stock indexes are rising currently after an uptick Wednesday as the European Commission unveiled its plan for a 750 billion euro ($826.5 billion) recovery fund. Asian indexes are mixed today after China approved controversial national security bill for Hong Kong. Shanghai Composite added 0.3% despite the passage by US Congress of a bill that would impose sanctions on Chinese officials involved in the mass surveillance and detention of Uighurs and other ethnic groups. And US Secretary of State Pompeo officially determined that Hong Kong is no longer autonomous from China, which could result in revoking the city’s two decades of US economic privileges.

Brent is extending losses today. Prices fell Wednesday after reports that said Russia was in favor of easing production cuts in July as planned in the agreement by the Organization of the Petroleum Exporting Countries and its allies earlier this year. The US oil benchmark West Texas Intermediate (WTI) futures fell: June WTI fell 4.5% and is falling currently. July Brent crude closed 4% lower at $34.74 a barrel on Wednesday.

Gold prices are rising back today. June gold slipped 0.08% to $1701.60 an ounce on Wednesday