Dollar falls as currency traders shift Fed rate-hike view to December

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The dollar weakened Thursday, continuing a decline that began after minutes from a July meeting of Federal Reserve policy makers suggested that several of them may not be ready to raise interest rates in September.

The ICE U.S. dollar index a measure of the dollar’s strength against a basket of six currencies, was down 0.4% to 95.9630. It has shed 0.4% of its value so far this week, a significant move for the dollar-strength gauge.

The euro rose 0.8% to $1.1216, a one-week high, while the dollar weakened 0.4% against the Japanese yen to trade at 123.44.

The dollar found its bottom around 10:30 a.m. Eastern, and traded sideways for much of the session as U.S. stock prices dropped sharply.

The Dow Jones Industrial Average and S&P 500 recorded their largest one-day losses since Feb. 3, 2014. And the 10-year yield fell to its lowest level since April 30.

Overall, economic data released Thursday was mixed with jobless claims rising for a fourth straight week last week, while the Philly Fed index – a gauge of manufacturing conditions within the Philadelphia Federal Reserve district – showed manufacturing conditions improved in July.

Source : MarketWatch

Gold Climbs to One Month High as Bets Fall on U.S. Rate Increase

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Gold advanced to the highest in a month as traders scaled back bets on a U.S. interest-rate increase in September after Federal Reserve officials said they needed more evidence that the economy is strengthening.

Gold futures for December delivery rose 2.2 percent to settle at $1,153.20 an ounce at 1:42 p.m.on the Comex in New York. Prices rose to $1,153.70, the highest for a most-active contract since July 15.

Most Fed officials in July “judged that the conditions for policy firming had not yet been achieved,’ the minutes showed. Holdings in bullion-backed exchange-traded products rose 3.4 metric tons to 1,514.6 tons Wednesday, data compiled by Bloomberg show. They’re still near the lowest since 2009.

Silver futures for December delivery gained 2.2 percent to $15.562 an ounce on the Comex. On the New York Mercantile exchange, platinum and palladium rose.

Source: Bloomberg

S&P 500 Drops Most Since February 2014 on Global Growth Concern

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The Standard & Poor’s 500 Index tumbled the most since February 2014 as the selloff in emerging-market stocks deepened, fanning concerns over slowing global growth.

The Standard & Poor’s 500 fell 2.1 percent to 2,035.97 at 4 p.m. in New York, dropping below a trading range it’s been in for most of the year. The Dow Jones Industrial Average lost 355.97 points, or 2.1 percent, to 16,992.76, the lowest level since October. The Nasdaq 100 Index tumbled 2.8 percent, with only four members advancing. The Chicago Board Options Exchange Volatility Index rose for a fourth day, heading for its biggest weekly gain of 2015.

The rout in emerging markets intensified, with Kazakhstan becoming the latest country to stop defending its currency, as developing nations struggle to overcome plunging prices for commodity exports and China’s shock devaluation.

Source : Bloomberg

S&P 500 Erases Gain for Year as Global Growth Concerns Intensify

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The Standard & Poor’s 500 Index erased gains for the year as the selloff in emerging-market stocks deepened, fanning concerns over slowing global growth.

Netflix Inc. lost 7.4 percent as investors targeted the biggest winners of the year. Media stocks were poised for a correction as Walt Disney Co. tumbled 5.1 percent amid an analyst downgrade. Bank of America Corp. and Citigroup Inc. slumped more than 2.7 percent to pace declines among the largest banks.

The Standard & Poor’s 500 fell 1.2 percent to 2,055.19 at 11:52 a.m. in New York, dropping below its average price for the past 200 days. The Dow Jones Industrial Average lost 218.91 points, or 1.3 percent, to 17,129.82. The Nasdaq 100 Index tumbled 1.9 percent, with only six members advancing. The Chicago Board Options Exchange Volatility Index rose for a fourth day, heading for its biggest weekly gain of 2015.

The rout in emerging markets intensified as Kazakhstan abandoned its currency trading peg, joining Vietnam after China’s devaluation. Currency weakness and a slowdown in Chinese growth prompted Citigroup Inc. to cut its 2016 global growth forecast to 3.1 percent from 3.3 percent, its third consecutive downgrade, while holding its 2015 estimate at 2.7 percent.

Source: Bloomberg

Intensifnya Aksi Selloff Saham Eropa ditengah Kecemasan Pertumbuhan Global

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Meningkatnya kekhawatiran bahwa pelemahan pertumbuhan global dan ketidakpastian tentang waktu kenaikan suku bunga AS menyeret saham Eropa melemah untuk hari kedua.

Jeda untuk ekuitas Eropa pada awal pekan ini tidak berlangsung lama, seiring gejolak di pasar negara berkembang melebar. Kazakhstan adalah negara terbaru yang mendevaluasi mata uangnya, menyusul langkah serupa dilakukan oleh China pekan lalu. Indeks FTSE 100 Inggris jatuh untuk hari kedelapan, turun sebesar 10 persen di bawah level tertingginya bulan April lalu, level yang dikenal sebagai koreksi.

Indeks Stoxx Europe 600 anjlok sebesar 2,1 persen ke level 373,44 pada penutupan perdagangan, mencatat penurunan sejak devaluasi mata uang China menjadi 6,6 persen.

Pasar melihat peningkatan volatilitas karena investor menilai waktu kenaikan suku bunga AS. Risalah dari pertemuan Federal Reserve Juli lalu, diadakan sebelum devaluasi yuan, menumpahkan cahaya lebih lanjut tentang apakah para pejabat akan segera menaikan suku bunga pada bulan September mendatang. (izr)

Sumber: Bloomberg