 Dollar Rebounds, European Stocks Track Asia Gains: Markets Wrap
Bloomberg - 1/3/2017 3:40:27 PM
(0 ratings. You must sign in to rate.)
The U.S. Dollar Index recovered from an earlier loss to extend Monday’s gain, while European equities advanced after Asian markets and crude oil rose on the first full trading day of the New Year. A private factory gauge indicated strength in China’s economy.
The dollar was at its strongest against the yen since Dec. 21 and highest versus the Turkish lira in a month. However, it remained weaker against currencies including the Australian and New Zealand dollars and the British pound. Australia’s benchmark index touched the highest level in 1 1/2 years and the Shanghai Composite Index gained for a second day. Oil traded above $54 a barrel as OPEC member Kuwait cut output and gold advanced for a fifth time in six sessions. The yield on 10-year U.S. Treasuries rose 3 basis points to 2.479 percent.
Reports on Sunday showed China’s official factory gauge stabilized near a post-2012 high while services remained robust, capping a year of steady improvement in both indicators. A private factory gauge released Tuesday also came in better than anticipated. Swaps contracts show the Federal Reserve is expected to raise interest rates twice this year, after increasing them once in each of the past two years.
“A year ago, the Chinese markets kept everyone on their toes; a year later, the outlook certainly appears to be more optimistic though we may have to bring back the catchphrase of ‘cautious optimism’ going into the new year as we search for clarity,” said Jingyi Pan, a market strategist at IG Asia Pte.
Key U.S. reports this week should provide further evidence if the world’s largest economy is strong enough to withstand higher borrowing costs. The Bloomberg Dollar index, which rose 0.4 percent Tuesday, closed 2016 with its strongest quarterly rally since 2008 as 10-year Treasuries offered the highest yields since 1999 relative to Group-of-Seven peers.
“I still think we have a firm dollar-strength trend in place, however I am wary of a New Year rally for riskier assets, especially the Aussie,” said Hugh Killen, Sydney-based head of foreign exchange, fixed income and commodities trading at Westpac Banking Corp., Australia’s second-biggest lender. “The Trump reflation trade has been so powerful, but I think we need to hold off now until the inauguration when we may get a better idea of what his presidency will really look like.”
Stocks
The Euro Stoxx 50 Index rose 0.3 percent following a 0.6 percent gain Monday.
The Shanghai Composite Index added 0.9 percent, while Hong Kong’s Hang Seng Index added 0.7 percent and South Korea’s Kospi jumped 0.9 percent, the most since Dec. 8.
Australia’s S&P/ASX 200 Index rose 1.2 percent.
The MSCI Asia Pacific excluding Japan Index rebounded from losses and was up 0.4 percent.
Financial markets in Japan, New Zealand and Thailand were closed for a bank holiday.
Currencies
The Dollar Index was up 0.1 percent at 102.90 after a 0.6 percent gain Monday.
The yen slid 0.3 percent to 117.94 per dollar, giving up its earlier advance to 117.22.
The euro pared its gains against the dollar and was flat. The Aussie and kiwi were up 0.3 percent and 0.2 percent, respectively.
Korea’s won rose 0.4 percent, while Malaysia’s ringgit was down 0.2 percent at the weakest since 1998. The Taiwanese dollar erased losses to trade up 0.1 percent.
The U.S. currency has risen against 10 of 16 major developed and emerging market peers since Dec. 30.
Commodities
Crude oil rose 0.6 percent to $54.02 a barrel in New York, close to the $54.51 it reached on Dec. 12, which was its highest level since July 2015.
Gold climbed 0.5 percent to $1,153.13, advancing for the fifth time in the past six trading sessions.
Aluminum was little changed at $1,692 per metric ton on the London Metal Exchange, while nickel jumped 1.4 percent to $10,160 a ton.
|
|
|
|
|
|
|
|
Market Update
Last updated at 3:08:19 PM
|
|
|
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
|
|
|
|
|
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
|
|
|
|
|