USD Strengthens, Brent Crude Continues to Drop, Virgin Money to Float on LSE
October 2, 2014 7:57 am
The US Dollar rallied against other major currencies yesterday, reaching a 2-year high against the Euro and a new 6-year high against the Yen. Dollar/Yen briefly reached the 1:110 mark, last seen in 2008 – Dollar/Yen currently stands at 1:108.8. The Nikkei, which often rises when the Yen weakens, instead closed down by 2.61% this morning, with poor global manufacturing figures hitting Japanese exporters and a degree of trepidation ahead of the expected end of the US Fed’s current programme of quantitative easing later this month. The S&P 500 closed down by 1.32% yesterday, with both Markit and ISM Manufacturing PMI figures showing a decrease in September rather than the expected increase.
In commodities news, Brent Crude prices have continued to drop, affected by the strengthening Dollar as well as oversupply issues. Over $100 a month ago, Brent Crude was trading below $93 this morning. The IS situation in Syria and Iraq has failed to send oil prices soaring, with the terrorist group so far failing to seriously threaten production in the oil-rich southern regions of Iraq.
Meanwhile, in the UK Virgin Money has announced its intention this morning to float on the London Stock Exchange. The banking branch of Virgin Group hopes to raise £150 million through its IPO, a third of which will be repaid to the UK government as a tranche of Virgin Money’s ongoing payment for its purchase of Northern Rock in 2012. The IPO is expected to take place before the beginning of November.
The US Dollar rallied against other major currencies yesterday, reaching a 2-year high against the Euro and a new 6-year high against the Yen.
Dollar/Yen briefly reached the 1:110 mark, last seen in 2008 – Dollar/Yen currently stands at 1:108.8. The Nikkei, which often rises when the Yen weakens, instead closed down by 2.61% this morning, with poor global manufacturing figures hitting Japanese exporters and a degree of trepidation ahead of the expected end of the US Fed’s current programme of quantitative easing later this month. The S&P 500 closed down by 1.32% yesterday, with both Markit and ISM Manufacturing PMI figures showing a decrease in September rather than the expected increase.
In commodities news, Brent Crude prices have continued to drop, affected by the strengthening Dollar as well as oversupply issues. Over $100 a month ago, Brent Crude was trading below $93 this morning. The IS situation in Syria and Iraq has failed to send oil prices soaring, with the terrorist group so far failing to seriously threaten production in the oil-rich southern regions of Iraq.
Meanwhile, in the UK Virgin Money has announced its intention this morning to float on the London Stock Exchange. The banking branch of Virgin Group hopes to raise £150 million through its IPO, a third of which will be repaid to the UK government as a tranche of Virgin Money’s ongoing payment for its purchase of Northern Rock in 2012. The IPO is expected to take place before the beginning of November. 
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