07.11 - Stocks, Dollar push higher, Euro plunges
Sentiment is looking positive for global markets this Tuesday. Stocks and the USD are pushing higher, sending the Euro to 3-months low levels. Looking ahead, investors will keep an open eye on fresh U.S. jobs data and on new remarks by the Fed later today. Elsewhere, Oil prices remain high amid instability in Saudi Arabia – one of the world’s biggest oil producers. Here are the big things to know for today’s trading.
The dollar is back in demand, with a modest rise in U.S. yields helping the U.S currency, as investors continued to monitor the progress of the U.S. tax bill that, if enacted, would be the biggest overhaul of the U.S. tax system since the 1980s.
The dollar index, which tracks the greenback against a basket of six major currencies, added almost 0.5% to briefly top the 95.00-mark for the first time since Oct. 27.
The firmer dollar pushed the Euro down to 1.1555, the single currency's lowest since mid-July. The euro's losses accelerated after automatic sell programs were triggered after it breached below the 1.16-level.
The global rally in stocks showed no sign of slowing, with indices around the world reaching their latest in a run of record highs, as upbeat investors continued to pile in to equities.
Asian-Pacific markets rallied to their highest in a decade, as investors digested earnings reports and U.S. President Donald Trump's tour of the region continued.
Among notable standouts, Japan's Nikkei jumped 1.7% to end at its highest level since 1992. Down under, Australia's S&P/ASX 200 rose 1% to its highest since February 2008, bolstered by strong commodities prices.
In Europe, most of the region's bourses were in positive territory in mid-morning trade, with sluggishness in the euro boosting the export-oriented DAX index to a new record high.
On Wall Street, U.S. stocks looked set to open little changed near their all-time highs, as investors looked to key earnings reports to set the tone for the markets. Wall Street's three major indexes closed at record highs on Monday.
Tuesday's relatively light economic calendar features U.S. data on JOLTS job openings for September at 15:00 GMT.
On the central bank front, Janet Yellen, the outgoing Fed chair, will deliver acceptance remarks at the presentation of the Paul H. Douglas Award for Ethics in Government, in Washington DC 19:30 GMT.
Comments from Fed Vice Chair for Supervision Randal Quarles will also be on the agenda. He will deliver remarks at The Clearing House's annual conference in New York at around 17:30 GMT.
The U.S. central bank is scheduled to hold its final policy meeting of the year on Dec. 12-13, with interest rate futures pricing in a 100% chance of a rate hike at that meeting.
Oil prices held near their highest level in more than two years, amid growing concern over instability in Saudi Arabia, the world’s top crude producer and OPEC’s most influential member.
Brent crude futures, the benchmark for oil prices outside the U.S., dipped 15 cents, or 0.3%, to $64.11 a barrel, not far from an intraday peak of $64.65, which was its best level since July 2015.
Meanwhile, U.S. West Texas Intermediate crude futures were little changed at $57.36 a barrel, after climbing to its highest since mid-2015 at $57.69 earlier.
Crude prices surged more than 3% on Monday, their biggest percentage gain in about six weeks, following a weekend purge in Saudi Arabia that saw high-level officials and members of the royal family detained.
Looking ahead, the American Petroleum Institute is due to release its weekly supply report at 21:30 GMT, amid forecasts for an oil-stock drop of around 2.8 million barrels, which would mark the second weekly decline in a row.
- by Roger Gain