Stock market climbs; Waterfront, ICTSI up

Janie Parker
July 12, 2017

U.S. dollar jumped to a two-month high against the yen the previous day.

The dollar went up to a four-month high near ¥114.50 in Tokyo trading Tuesday, lifted by higher US long-term interest rates and a stock price rise.

Gold's performance has recently suffered from the higher Dollars and rising US Treasury yields, as well as from the continued improvement in global stock market conditions and recently stronger US economic data which has led investors to relocate funds to riskier assets.

Asian shares were firm, with the MSCI's broadest index of Asia-Pacific shares outside Japan up 0.6 percent.

Largely ignored in the Fed report is the debate over fiscal policy, and in particular whether the Trump administration will be able to convince Congress to lower taxes and increase infrastructure investment, and if so, the impact of such stimulus on the economy.

"Looking ahead, we think improving corporate earnings are the key ingredient needed to sustain the equity bull market", said Bob Doll, senior portfolio manager and chief equity strategist at Nuveen Asset Management Llc.

Tokyo ended 0.6 percent higher while Hong Kong surged 1.5 percent in the afternoon and Sydney put on 0.1 percent.

The ICE Dollar Index, which measures the dollar against a basket of six currencies, was 0.1% higher, at 96.13.

Services scheduled for slain NYPD Officer Miosotis Familia
Officer Familia's wake will be held on Monday and she will be laid to rest on Tuesday. Barnabas for psychiatric treatment, and he was released that same day, Boyce said.


German bunds came under renewed selling pressure early in Europe on Tuesday with the increase in yields providing net Euro backing with EUR/USD finding support just above the 1.1380 level.

Overall confidence in the US outlook is firm enough to cap immediate EUR/USD upside with markets waiting for fresh evidence on likely European Central Bank trends and Yellen's take on US monetary policy.

The Fed on Friday said it expects a "gradual" increase in interest rates (https://www.federalreserve.gov/monetarypolicy/mpr_default.htm) and for balance-sheet normalization to begin this year.

He added that the Bank of Japan in contrast is not anywhere close to exiting its policy and has taken steps to weaken its yen.

On Friday, the BOJ sought to keep Japanese government bond yields near its policy target, embarking on a special market operation as well as increasing the size of its regular JGB purchase operations.

Another retailer, Best Buy, dived 6.3 per cent following reports that Amazon plans to launch its own service of technical experts to make house calls, in direct competition with Best Buy's "Geek Squad".

A higher USA currency makes dollar-denominated commodities more expensive for holders of other currencies, which could subdue demand.

Other reports by TheDailyFarc

Discuss This Article

FOLLOW OUR NEWSPAPER