23 September 2021
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- Dollar hits one-month high as traders eye Fed rates liftoff
- Asian markets surge higher, Hong Kong’s Hang Seng jumps nearly 2%
- Oil climbs on tight supply, renewed risk appetite
The dollar hit its highest in a month on Thursday and pressed the euro towards major support levels, after the Federal Reserve set the stage for rate hikes next year — far sooner than its developed market peers are expected to move.
The U.S. central bank left policy settings unchanged overnight and, as expected, did not announce the beginning of asset purchase tapering. But the Federal Reserve said “a moderation in the pace of asset purchases may soon be warranted” and Fed Chair Jerome Powell said board members believed tapering could conclude around mid-2022, opening the way for rate hikes after that.
At a one-month low of $1.1684 in early Asia trade, the euro is close to its 2021 trough of $1.1664. The yen also lost ground after Powell’s news conference and ended up falling 0.5% for the session – its sharpest drop in more than three months – taking it to 109.87 per dollar, about the middle of a range it has kept since March. The dollar index hit a one-month high of 93.526.
Shares in Asia-Pacific were mostly higher in Thursday morning trade as investors in Asia-Pacific continue monitoring the situation surrounding China Evergrande Group.
Hong Kong’s Hang Seng index jumped 1.86% after losses earlier in the week. It had returned to trade after a holiday on Wednesday.
Mainland Chinese stocks were also higher, with the Shanghai composite climbing 0.85% while the Shenzhen component advanced 0.577%. South Korea’s Kospi, returning to trade from holidays earlier in the week, slipped 0.51%. The S&P/ASX 200 in Australia edged 1.07% higher. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.76% higher.
Oil prices rose on Thursday, extending strong gains overnight with fuel demand growing and crude stocks declining as production remains hampered in the U.S. Gulf of Mexico after two hurricanes.
U.S. West Texas Intermediate (WTI) crude futures rose 13 cents, or 0.2%, to $72.36 a barrel , while Brent crude futures rose 17 cents, or 0.2%, to $76.36 a barrel.
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