Asia shares inched ahead while the dollar slipped on Tuesday as a dearth of major data left markets with little to do but second guess whether the Federal Reserve will raise USA interest rates this year. EMini futures for the S&P 500 ESc1 were flat. It is probably no coincidence that world financial markets went through a rocky patch after the Fed raised rates for the first time since 2006 last December, even if other factors – notably fears about China – were also then in play. Second-quarter earnings reports are effectively over, and the next major piece of economic news does not come until Friday, when Federal Reserve Chair Janet Yellen will speak at the Fed’s annual conference in Jackson Hole, Wyoming.
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In forex markets, the dollar was the central focus as it slipped 0.25 per cent to 94.286 against a basket of currencies. It also appears that markets are somewhat discounting the pronouncements by Saudi Arabia that it may consider freezing production to support higher prices-a case of “we’ve seen this movie before”.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3 per cent in slow trade overnight.
Two-year note yields fell one basis point to 0.74 percent after earlier reaching the highest since June 23 – the day Britain voted to leave the European Union, and before the result of that referendum sparked a buying spree in the safest government debt. Futures prices indicate about a 52 percent chance the central bank will increase rates this year, up from a 45 percent probability a week ago, according to data compiled by Bloomberg.
Biotech stocks received a boost from Pfizer’s $14 billion acquisition of cancer drug maker Medivation, which jumped almost 20 percent.
On the earnings front, Best Buy shares surged after reporting quarterly results. Brent crude, used to price global oils, tumbled 93 cents to $49.95 per barrel in London.
KEEPING SCORE: The Dow Jones industrial average lost 44 points, or 0.2 percent, to 18,509 as of 12:05 p.m.
Markit also said that the French manufacturing PMI ticked down to 48.5 in August from 48.6 last month, compared to expectations for a rise to 48.8.
NEW YORK (AP) – Stocks are moderately lower in midday trading Monday as the market drifts between small gains and losses. Many market participants in the West are on vacation, so trading has been particularly slow lately.
The euro eased to $1.1281 from $1.1324.
The Canadian dollar weakened to a one-week low against its USA counterpart on Monday as comments by a Federal Reserve official supported the greenback and oil prices fell, offsetting stronger-than expected domestic data.
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On Monday WTI shed 2.9 percent and Brent 3.4 percent after Iraq signalled a likely increase in output from Kirkuk’s oil fields under a deal between the region and the country’s new oil minister.
