Dollar Index Hits 12.5 Year High After Hawkish Fed Comments, Crude Fluctuates Prior to OPEC Meeting
December 3, 2015 7:02 am
Both US and Asian stocks ended around one percent lower in the previous session after hawkish comments from the Fed wetted investors beaks for a potential rate hike in the states on December the 16th. This caused the Dollar Index to a hit a twelve and a half year high and Nymex to drop briefly below $40 a barrel. The Dow Jones industrial average dropped 158 points to close at 17,729, the S&P 500 fell 23 points to 2,079.51.
The Euro slipped 0.2% to $1.0594m as the markets braced for a December rate hike. The Dollar also rose to 123.68 Yen, a two week high, on Wednesday, before paring gains. The Australian Dollar dipped 0.3% to $0.7286 after the country posted a larger than expected trade deficit.
U.S. crude bounced 1.2% at $40.43 a barrel after tumbling 4% overnight. Crude was still capped with OPEC widely expected not to opt for a production cut at Friday’s meeting despite a global supply glut. Spot gold stooped to $1,045.85 an ounce, its lowest since February 2010. Higher interest rates would diminish the allure of non-yielding gold and a stronger Greenback makes the Dollar-denominated metal more expensive for buyers. Copper edged back toward a six year low of $4,443.50 touched late last month, with pleas for Chinese government intervention providing little relief.
Within the equity space, Pub group Greene King edged higher as it reported record retail revenue of £1bn in its full year results, although profits leaked lower as a result of a decline in like for like sales and the impact of the disposal of 275 pubs to Hawthorn Leisure. The stock is up 0.5% in early trade at 965p per share.
Both US and Asian stocks ended around one percent lower in the previous session after hawkish comments from the Fed wetted investors beaks for a potential rate hike in the states on December the 16th. This caused the Dollar Index to a hit a twelve and a half year high and Nymex to drop briefly below $40 a barrel. The Dow Jones industrial average dropped 158 points to close at 17,729, the S&P 500 fell 23 points to 2,079.51.
The Euro slipped 0.2% to $1.0594m as the markets braced for a December rate hike. The Dollar also rose to 123.68 Yen, a two week high, on Wednesday, before paring gains. The Australian Dollar dipped 0.3% to $0.7286 after the country posted a larger than expected trade deficit.
U.S. crude bounced 1.2% at $40.43 a barrel after tumbling 4% overnight. Crude was still capped with OPEC widely expected not to opt for a production cut at Friday’s meeting despite a global supply glut. Spot gold stooped to $1,045.85 an ounce, its lowest since February 2010. Higher interest rates would diminish the allure of non-yielding gold and a stronger Greenback makes the Dollar-denominated metal more expensive for buyers. Copper edged back toward a six year low of $4,443.50 touched late last month, with pleas for Chinese government intervention providing little relief.
Within the equity space, Pub group Greene King edged higher as it reported record retail revenue of £1bn in its full year results, although profits leaked lower as a result of a decline in like for like sales and the impact of the disposal of 275 pubs to Hawthorn Leisure. The stock is up 0.5% in early trade at 965p per share.
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