KEEPING SCORE: France’s CAC 40 rose 0.7 percent to 4,419 while Germany’s DAX climbed 0.7 percent to 10,570.
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Shanghai added 0.2 percent and Sydney closed 0.7 percent higher while Seoul tacked on 0.4 percent. The Dow Jones industrial average lost 0.1 percent to 18,529.42. The IHS Markit survey of purchasing managers at services and manufacturing companies showed business activity grew at a seven-month high, helping buoy European investor sentiment.
SUMMER LULL: Global markets have been subdued as investors and traders took summer holidays and major economic data releases were lacking.
The dollar crept up on Wednesday after falling the previous day, but was unable to break out of its recent trading ranges, as investors focused on a gathering of central bankers for clues on when the US Federal Reserve will hike interest rates again. In recent days, Fed Vice Chairman Stanley Fisher signaled that a 2016 rate hike is still under consideration, saying the USA economy is close to meeting the central bank’s goals.
However, the possibility of a Fed rate hike in December is gradually edging higher, which could hypothetically see the US Dollar strengthen on pre-positioning to the main event on Friday.
ASIA’S DAY: Japan’s Nikkei 225 rose 0.6 percent to 16,597.30 on rising hopes for more monetary stimulus from the Bank of Japan and a raft of government stimulus, while Australia’s S&P/ASX 200 added 0.1 percent to 5,561.70.
Meanwhile, the Nasdaq Composite Index (NYSEARCA:QQQ) rose 0.3%, settling just below all-time highs.
The local currency rose as high as 73.44 United States cents after the Reserve Bank yesterday reiterated expectations for 35 basis points of further cuts to the official cash rate, but pushed back against critics calling for either a pause or more aggressive action. The greenback was also sharply up against high-yielding units including the Australian dollar, South Korean won and Indonesian rupiah.
The UK benchmark index is expected to open in the red this morning, shrugging off an upbeat lead from the United States, amid lower oil prices and investor caution ahead of the Federal Reserve Janet Yellen’s speech in Jackson Hole, Wyoming, later this week.
USA crude jumped 70 cents or 1.4% to US$48.11. USA crude futures fell 36 cents to $47.07, after the September contract expired on Monday at $47.05. A gauge measuring the performance of the dollar moved closer to a three-month low reached last week and extended this year’s loss to 5.5%, on track for the worst year since 2007.
The dollar was last up 0.25 percent against the yen at 100.45 yen.
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GBP/USD gained 0.36% to traede at 1.3181.
