Five Things You Need to Know to Start Your Day: Europe
Get up to speed with what the markets are monitoring
Good morning. The US dollar continues its ascent and so does oil amid heightened tensions around the Middle East, while a mixed bag of Chinese economic data and a weaker yuan fixing send Asian stocks and currencies lower. Here’s what people are talking about.
The dollar keeps on climbing, weighing on broad risk sentiment. The greenback got a boost Tuesday in Asia from China’s loosening its grip on the yuan and Japan’s tepid warning on yen weakness. Going forward, nothing seems to be getting in the way of the dollar’s resurgence as interest rates may remain higher for longer. San Francisco Fed President Mary Daly reiterated there’s no urgency to adjust interest rates. There’s even a possibility that the Fed may hike rates to 6.5%, say UBS strategists. With shares and currencies tumbling across Asia, it’s shaping up to be a downbeat day for Europe too, with the region’s equity futures lower.