Asian Stock market dollar recovers from 13-month low on strong PMI readings
On Tuesday 25th July, 2017 it is reported by Nichola Saminather that the value of the dollar in Asian Stock Exchange held above a 13-month low after readings.
According to the Reuters in Singapore the worth of Dollar on U.S. factory and services activity beat expectations ahead of the start of a Federal Reserve meeting later in the day.
Asian stocks were subdued with few catalysts to drive them.
It is reported that the dollar was little changed at 111.065 yen JPY=D4 on Tuesday, after touching a six-week low on Monday.
Jingyi Pan, market strategist at IG in Singapore said, “Limited moves within global markets may leave Asian markets to chart their own course in the day.
“It would be no surprise to see markets holding once again for key items into the latter half of the week.”
The U.S. dollar rose from its lowest in more than a year and U.S. Treasury relent climbed while euro zone business growth at the start of the second half of the year slowed.
On Monday as investors braced for news from that week’s U.S. central bank meeting and possible hints on when the next interest rate hike would come.
“The dollar index .DXY, which tracked the greenback against a basket of six major peers, was steady at 93.951 on Tuesday, up from Monday’s low of 93.823, its lowest level since June 2016,” according to the state official News media.
Matt Simpson, senior market analyst at Think Markets in Melbourne said, “The expectation of a slightly dovish Fed and a White House seemingly in turmoil is likely to weigh further on the greenback for the foreseeable future.”
Jared Kushner, President Donald Trump’s son-in-law and senior advisor, told Senate investigators on Monday, “I have met with Russian officials four times last year.
“I do not collude with Moscow to influence the 2016 U.S. election.”
In stocks, MSCI’s broadest index of Asia-Pacific shares outside Japan MIAPJ0000PUS edged up less than 0.1 percent, with some markets looking for fresh impetus after hitting multi-year highs in recent weeks and few drivers in the region to guide them.
Additionally, according to the resources, it is noted that Chinese shares also fell, with the blue-chip CSI 300 index, CSI300 down 0.3 percent at Shanghai Composite, SSEC dropping 0.1 percent. While Hong Kong’s Hang Seng slightly advanced.
In commodities, oil prices extended their recovery on a pledge by leading OPEC producer Saudi Arabia to cut exports in August which would help to reduce the global crude glut.
Haliburton Co.’s (HAL.N) Executive Chairman also said, “the U.S. shale drilling boom would probably ease next year.”
Reporter: Syeda Faiza Bukhari