Dollar stabilises after selloff; focus on North Korea, Hurricane Irma

Share

Some analysts expected North Korea to conduct a weapons test on Saturday, coinciding with the country's founding day, as it did a year ago to mark the celebration. "The Dow Jones outperformed, closing 0.1% higher as The Traveler's and Boeing led risers".

KEEPING SCORE: The Standard & Poor's 500 index rose 20 points, or 0.8 percent, to 2,481 as of 10 a.m.

South Korea's main index added 0.8 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4 percent.

United Kingdom stocks rose Monday, with insurers among advancers as the impact of Hurricane Irma appeared not as widespread as anticipated.

President Donald Trump signed a bill on Friday extending the government debt limit for three months and providing about $15 billion in hurricane-related aid, bringing his surprising deal with Democratic congressional leaders this week to completion.

US officials are pushing the United Nations Security Council to ban Pyongyang's textile exports and embargo oil sales to the country.

Meanwhile, concerns about the impact of Hurricane Irma on the US economy also decreased, after it hit Florida on Sunday with the strength of a Category 4 storm, instead of a Category 5 hurricane, as many analysts feared.

The dollar's gains were also helped by news that China's central bank plans to scrap reserve requirements for financial institutions settling foreign exchange forward yuan positions with effect from Monday, according to four sources with direct knowledge of the matter who spoke to Reuters last Friday. Although the National Weather Service said the extreme storm conditions would continue for much of central and western Florida, Irma weakened further Monday. "So I think we are going to see the S&P and the Dow gap higher on the open".

Spot gold may break a support at $1,332 per ounce and fall more to the next support at $1,317, said Reuters technical analyst Wang Tao.

Meanwhile, bitcoin rose 1.9 percent to $4,306.85 on the BitStamp platform, regaining some ground after tumbling late last week.

The safe-haven yen and Swiss franc were lower, with up 0.55% at 108.41 and with climbing 0.51% to trade at 0.9489.

The weaker yen boosted Japanese blue-chip stocks, because investors measure the performance of these multinationals against revenues earned in foreign currencies overseas.

South Korea's benchmark Kospi index tacked on 0.88% as geopolitical tensions eased on the Korean peninsula over the weekend. United States crude added 0.82% to trade at $47.87 a barrel and Brent crude rose 0.5% to trade at $54.05 a barrel.

Global financial markets will focus on a key batch of US economic data in the week ahead, with Thursday's inflation report in the spotlight, for further clues on the timing of the next Federal Reserve rate hike. But as the start of USA trading neared, it had weakened to a tropical storm and was expected to slow to a tropical depression by Tuesday.

Share