29 September 2021
World Markets at a glance for Currency, Equity, Commodity, Bonds, Crypto Currency, Financial News & Major Economic Events.
- Dollar stands tall as traders brace for tapering
- Japan’s Nikkei 225 falls more than 2% as Asia-Pacific shares slide
- Brent dips after topping $80 a barrel, highest since October 2018
The dollar traded near its highest levels of the year on Wednesday, after driving higher with U.S. yields and benefiting from investor nervousness about the Federal Reserve starting to withdraw policy support just as global growth headwinds gather.
The dollar rose broadly overnight to lift the dollar index to an 11-month high of 93.805. It was marginally below that level early in the Asia session at 92.728.
U.S. Treasury yields have surged – with benchmark 10-year rates up 25 basis points in five sessions to 1.5548% – as Fed tapering looms before the year’s end and as inflation starts to look stickier than first thought.
The Japanese yen , which is sensitive to U.S. yields as higher rates can draw flows from Japan, has fallen about 2% in five sessions and at 111.57 per dollar is not far from hitting its lowest level since February 2020. The euro fell to a one-month low overnight and, last buying $1.1684, is also testing major support levels around its 2021 low of $1.1664 and its November 2020 low of $1.1602.
Asia-Pacific stocks fell in Wednesday morning trade following an overnight tumble on Wall Street, with the Nasdaq Composite plunging nearly 3% as bond yields rise.
In Japan, the Nikkei 225 slipped 2.41% while the Topix index dropped 2.5%. South Korea’s Kospi declined 1.85%. Hong Kong’s Hang Seng index declined 1.81% before paring some of those losses. Mainland Chinese stocks slipped as the Shanghai composite shed 0.98% and the Shenzhen component dipped 0.95%. The S&P/ASX 200 in Australia fell 1.39%. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.3% lower.
Brent oil dipped on Tuesday after topping $80 per barrel for the first time in nearly three years, as a five-day rally ran out of steam with investors locking in profits.
Oil benchmark prices have been on a tear, with fuel demand growing and traders expecting major oil-producing nations will decide to keep supplies tight when the Organization of the Petroleum Exporting Countries (OPEC) meets next week.
Brent dipped 44 cents, or 0.6%, to $79.09 a barrel, after reaching its highest level since October 2018 at $80.75
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Disclaimer : All information in this report is collected from various sites on internet. Although we have taken all precautions for correct representation of data however we do not take any responsibility for any errors and omissions. The technical analysis and views expressed is authors own views. We are not responsible for any losses on account of following the same.