The euro was steady at $1.0977 after gaining about 0.4 percent on Friday. However, analysts believed that the market has fully factored in the expected December rate hike. “We are seeing a bit of a risk-on trade”, he said.
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The Dow Jones industrial average.DJI fell 252.98 points, or 1.43 percent, to 17,496.11, the S&P 500.SPX lost 31.16 points, or 1.5 percent, to 2,041.91 and the Nasdaq Composite.IXIC dropped 68.58 points, or 1.35 percent, to 5,002.55.
“Europe is up but volumes are light ahead of the biggest few hours in the markets for a number of years”, said James Hughes of GKFX.
Oil prices plunged last week since the Organisation of the Petroleum Exporting Countries (OPEC) on December 4 made a decision to keep crude production pumping at current level in the already over-supplied market.
The forex market is also keeping an eye on the Chinese currency after Beijing surprised some by appearing to shift the way it values the yuan, or renminbi, toward a trade-weighted basis instead of exclusively tracking the US dollar. Gains were broad based, with nine of its 10 main sectors trading higher.
On the economic front, US privately-owned housing starts in November were at a seasonally adjusted annual rate of 1,173,000, beating market consensus, said the Commerce Department Tuesday.
And Standard Chartered (London Stock Exchange: STAN-GB) shot up over 7 percent, after Reuters reported that Temasek, a top investor in the bank, would give it more time to perform a turnaround before considering what to do with its sizeable stake in the firm. (FSLR) shares jumped 9.7%, with traders giving some credit to congressional action lifting a ban on oil exports and at the same time extending solar and wind tax credits (http://www.marketwatch.com/story/congress-reaches-deal-to-lift-40-year-ban-on-oil-exports-2015-12-16).
Global Payments Inc. (GPN) shares slumped 8% after a deal late Tuesday to buy Heartland Payment Systems Inc.
Shares in Valeant Pharmaceuticals International Inc.
“As we saw with the ECB, it is easy to disappoint, so the communiqué, press conference, and Summary of Economic Projections will have a key role to play”, the bank said, adding that it expects Yellen to strike the right balance.
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West Texas Intermediate fell 50 cents to United States dollars 36.85 a barrel by 0048 GMT after rising more than USD 1 on Tuesday.
