US Markets and USD Rally as Investors Eye Possible Interest Rate Rise, Copper Hits 6 Year Low
November 17, 2015 7:45 am
Asian equity markets rallied across the board today following a rise in equities markets in Wall Street overnight as investors clawed back losses that came on the back of last week’s Paris attacks. In addition, increased expectations for a December rate rise by the Federal Reserve aided the Dollar’s bullish momentum.
MSCI’s broadest index of Asia-Pacific shares excluding Japan added 1.7 percent, retreating from a 6-week low printed on the previous day due to risk aversion following the awful attacks on Paris. The South Korean Kospi was trading higher at 1963.58, up by 1.06%, moreover Australian equities gained 1.8 percent and Japans Nikkei added 1.22 percent to 19630.63, brushing a 3-month peak.
In the FX market the Dollar held near seven-month highs in early Asian trading today, as investors focused on growing expectations that the U.S. Federal Reserve may hike interest rates at next month’s meeting. The Dollar index traded at 99.401, close to a seven-month high of 99.504 marked last week after stronger than expected U.S. jobs data. The Dollar added about 0.1 percent to Yen at 123.24, moving away from the previous session’s one-week low of 122. The Euro dipped to $1.0656, a 7-month low as the market boosted its dollar bets, considering the possibility of a rate rise at the FEDs next meeting.
Over in the energy markets, U.S. front month crude futures initially rose towards $42 per barrel but then pulled back to $41.69 a barrel, down 5 cents from its previous settlement. Brent crude futures rose towards $44.80 before falling back to $44.67 a barrel. According to the CFTC (the U.S. Commodity Futures Trading Commission), money managers have cut their net long U.S. crude futures and options positions during last week to their lowest in three months. Spot gold was little changed at $1,081.77 an ounce with investors focusing on the Fed’s December meeting. Three-month copper on the London Metal Exchange (LME) fell to 6-year lows on continued concerns that the world’s second largest economy, China, may be decreasing its demand for the red metal.
Asian equity markets rallied across the board today following a rise in equities markets in Wall Street overnight as investors clawed back losses that came on the back of last week’s Paris attacks. In addition, increased expectations for a December rate rise by the Federal Reserve aided the Dollar’s bullish momentum.
MSCI’s broadest index of Asia-Pacific shares excluding Japan added 1.7 percent, retreating from a 6-week low printed on the previous day due to risk aversion following the awful attacks on Paris. The South Korean Kospi was trading higher at 1963.58, up by 1.06%, moreover Australian equities gained 1.8 percent and Japans Nikkei added 1.22 percent to 19630.63, brushing a 3-month peak.
In the FX market the Dollar held near seven-month highs in early Asian trading today, as investors focused on growing expectations that the U.S. Federal Reserve may hike interest rates at next month’s meeting. The Dollar index traded at 99.401, close to a seven-month high of 99.504 marked last week after stronger than expected U.S. jobs data. The Dollar added about 0.1 percent to Yen at 123.24, moving away from the previous session’s one-week low of 122. The Euro dipped to $1.0656, a 7-month low as the market boosted its dollar bets, considering the possibility of a rate rise at the FEDs next meeting.
Over in the energy markets, U.S. front month crude futures initially rose towards $42 per barrel but then pulled back to $41.69 a barrel, down 5 cents from its previous settlement. Brent crude futures rose towards $44.80 before falling back to $44.67 a barrel. According to the CFTC (the U.S. Commodity Futures Trading Commission), money managers have cut their net long U.S. crude futures and options positions during last week to their lowest in three months. Spot gold was little changed at $1,081.77 an ounce with investors focusing on the Fed’s December meeting. Three-month copper on the London Metal Exchange (LME) fell to 6-year lows on continued concerns that the world’s second largest economy, China, may be decreasing its demand for the red metal.
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