Connect with us

Business and Economy

World shares muted, dollar climbs as rate outlook sinks in

Published

on

stock exchange global economy

HONG KONG—World stock markets were tepid Friday while the dollar consolidated its gains as investors adjust to the new reality of a future with higher U.S. interest rates.

Keeping score
European shares were lacklustre in early trading. France’s CAC 40 slipped 0.1 per cent to 4,814.13 and Germany’s DAX was flat at 11,366.16. Britain’s FTSE 100 edged up less than 0.1 per cent to 7,000.24. U.S. shares were poised for a mixed open. Dow futures crept up less than 0.1 per cent to 19,808.00 while broader S&P 500 futures ticked 0.1 per cent lower to 2,257.10.

Post-hike perspective
After an initial jolt from the Fed’s interest rate hike decision this week, markets are adjusting to the prospect of more increases that policymakers signalled were in store as they move to “normalize” interest rates. The Fed raised rates for only the second time in a decade and hinted three more hikes are on the way in 2017, rattling markets used to ultralow borrowing costs that have fueled a multiyear stock boom. The Fed’s move now shifts the focus from central bank policy to economic growth as the driver of stock market performance.

Market view
“The market seemed to have digested the Fed rate hike and started to position itself for a brighter outlook in the U.S. economy, and the changes Donald Trump’s new administration could bring to the equities market,” said Margaret Yang of CMC Markets in Singapore.

Asian scorecard
Japan’s benchmark Nikkei 225 index rose 0.7 per cent to close at 19,401.15 as the weakening yen helped shares of the country’s exporters. Other Asian indexes were listless. South Korea’s Kospi added 0.3 per cent to 2,042.24 and Hong Kong’s Hang Seng gave up the day’s gains in the final hour to close 0.2 per cent lower at 22,020.75. The Shanghai Composite Index in mainland China gained 0.2 per cent to 3,122.98 and Australia’s S&P/ASX 200 ticked 0.1 per cent lower to 5,532.90. Benchmarks in Taiwan, Indonesia and the Philippines lost ground but indexes in Singapore and Thailand rose.

Currencies
The dollar was hovering at its strongest level in 10 months, easing to 118.24 yen from 118.27 late Thursday. A weaker yen benefits Japan’s exporters by making boosting their earnings when they’re brought back from overseas. The euro fell to its lowest since early 2003, slipping to $1.0435 from $1.0412.

Energy
Benchmark U.S. crude rose 9 cents to $50.99 a barrel in electronic trading on the New York Mercantile Exchange. The contract slipped 14 cents to settle at $50.90 a barrel Thursday. Brent crude, the international standard, rose 17 cents to $54.19 a barrel in London.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Maria in Vancouver

Lifestyle3 weeks ago

Maria’s Funny Valentine With An Ex!

Maria in Vancouver can’t help but wonder: when will she ever flip her negative thoughts to positive thoughts when it...

Lifestyle4 weeks ago

The Tea on Vancouver’s Dating Scene

Before Maria in Vancouver met The Last One seven years ago and even long before she eventually married him (three...

Lifestyle2 months ago

How I Got My Groove Back

Life is not life if it’s just plain sailing! Real life is all about the ups and downs and most...

Lifestyle2 months ago

Upgrade Your Life in 2025

It’s a brand new year and a wonderful opportunity to become a brand new you! The word upgrade can mean...

Maria in Vancouver3 months ago

Fantabulous Christmas Party Ideas

It’s that special and merry time of the year when you get to have a wonderful excuse to celebrate amongst...

Lifestyle3 months ago

How To Do Christmas & Hanukkah This Year

Christmas 2024 is literally just around the corner! Here in Vancouver, we just finished celebrating Taylor Swift’s last leg of...

Lifestyle4 months ago

Nobody Wants This…IRL (In Real Life)

Just like everyone else who’s binged on Netflix series, “Nobody Wants This” — a romcom about a newly single rabbi...

Lifestyle4 months ago

Family Estrangement: Why It’s Okay

Family estrangement is the absence of a previously long-standing relationship between family members via emotional or physical distancing to the...

Lifestyle6 months ago

Becoming Your Best Version

By Matter Laurel-Zalko As a woman, I’m constantly evolving. I’m constantly changing towards my better version each year. Actually, I’m...

Lifestyle6 months ago

The True Power of Manifestation

I truly believe in the power of our imagination and that what we believe in our lives is an actual...