Dol­lar rise hits com­modi­ties as Fed talks of tight­en­ing

The Pak Banker - - MARKETS/SPORTS -

The dol­lar ad­vanced for a fifth straight ses­sion on Thurs­day, pres­sur­ing com­modi­ties and Asian shares af­ter yet an­other Fed­eral Re­serve of­fi­cial talked up the chance of more than one in­crease in U.S in­ter­est rates this year.

If the dol­lar .DXY can keep its foot­ing go­ing into the long Easter week­end it will notch up the first weekly gain in a month against a bas­ket of ma­jor cur­ren­cies. The euro eased to $1.1172 EUR=, leav­ing it well off last week's top of $1.1342. Ster­ling GBP also slid to $1.4096 GBP= on con­cerns the at­tacks in Brus­sels would aid the cam­paign to leave the Euro­pean Union in June's "Brexit" vote.

Eq­uity in­vestors tend to dis­like any hint of tighter U.S. pol­icy and MSCI's broad­est index of Asia-Pa­cific shares out­side Ja­pan. MIAPJ0000PUS slipped 1.0 per­cent. The re­source-heavy Aus­tralian mar­ket lost 1.1 per­cent and Shang­hai . SSEC 0.6 per­cent. Ja­pan's Nikkei .N225 lost 0.6 per­cent. Trad­ing house Mit­sui & Co (8031.T) dived 7.5 per­cent af­ter suf­fer­ing its first ever loss as it was hit by big write­down on its cop­per and gas in­vest­ments.

Euro­pean eq­ui­ties were ex­pected to open lower, with spread­bet­ting firm IG pre­dict­ing Bri­tain's FTSE 100 . FTSE to open 0.7 per­cent lower, Ger­many's DAX .GDAXI to fall 0.5 per­cent, and France's CAC 40 .FCHI to drop 28 0.6 per­cent.

On Wall Street the Dow .DJI ended Wed­nes­day with a loss of 0.45 per­cent, while the S&P 500 .SPX eased 0.64 per­cent and the Nas­daq .IXIC 1.1 per­cent.

St. Louis Fed Pres­i­dent James Bullard joined a cho­rus of of­fi­cials in high­light­ing the risk of at least two rate hikes this year, with the first per­haps as soon as April.

Mar­kets im­ply only one in­crease and deal­ers sus­pect an or­ches­trated at­tempt by the Fed to shift that think­ing. Yet for all the Fed's chat­ter about mul­ti­ple hikes, the mar­ket seemed far from con­vinced.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.