Dollar Ascendant as Dovish Fed Member Sticks With Rate-Rise Dots

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The dollar held three days of gains versus the euro and yen as a usually dovish Federal Reserve official signaled his expectation for more interest-rate increases than the market has priced.

The U.S. currency has climbed against eight of its Group-of-10 peers this week with Chicago Fed President Charles Evans on Tuesday joining the ranks of officials who are pushing back against traders pricing a single rate increase at the end of 2016 or later. Evans, one of the most dovish officials who will vote on policy next year, said projections, also referred to as the dot plot, for two rate hikes this year were “a pretty good setting” for him.

The dollar was little changed $1.1221 per euro as of 9 a.m. in Tokyo, after climbing 0.9 percent over the past three sessions. It bought 112.25 yen following a 0.9 percent, three-day gain.

Source : Bloomberg

Pound Falls as Risk of Brexit Mounts on Brussels Terror Attack

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The pound posted the biggest decline among major currencies amid speculation the Brussels terror attacks boost the case of campaigners who want to see Britain out of the European Union.

Sterling fell the most in a month versus the dollar as the tragedy risked turning the U.K. currency into even more of a political football. Pro-“Brexit” politicians argued that migration leaves Britain vulnerable to attack, while figures in the opposing camp, including Prime Minister David Cameron, have said that being part of the economic and political union aids security. The euro weakened against almost all of its major peers as investors shed European assets as confidence fell after the blasts.

Sterling fell Tuesday by the most among 17 major peers tracked by Bloomberg, sliding 1.1 percent to $1.4207 and 0.9 percent to 78.92 pence per euro as of 1:12 p.m. in New York. The shared currency declined 0.3 percent to $1.1213.

Source: Bloomberg

Japan Stocks Rise After Yen Weakens in Wake of Brussels Attacks

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Japanese shares rose for a second day as the yen weakened against the dollar following deadly terrorist attacks in Brussels.

The Topix index added 0.2 percent to 1,372.13 as of 9:01 a.m. in Tokyo, as about two shares rose for each that fell. The measure gained on Tuesday after falling for the past two weeks. The Nikkei 225 Stock Average advanced 0.2 percent to 17,082.34. The yen traded at 112.25 per dollar after retreating 0.4 percent on Tuesday after the bomb attacks that killed at least 31 people in the Belgian capital. Islamic State militants claimed responsibility for the explosions.

Two bombs went off in rapid succession at the Brussels airport and an explosion an hour later hit a subway station a short walk from the European Union headquarters. The strikes, which follow terror attacks in Paris in November and a suicide bombing in Istanbul on March 19, may add to security concerns in Europe as officials deal with an influx of migrants. The explosions came during Tuesday morning’s rush hour.

Source : Bloomberg

Hong Kong shares end lower as financial shares drag (Review)

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Hong Kong shares finished slightly lower on Tuesday with financial shares leading indexes down, in line with a sell-off in mainland China markets.

The Hang Seng index fell 0.1 percent to 20,666.75 points, while the China Enterprises Index lost 0.3 percent to 8,900.19.

Total trading volume of companies included in the HSI index was 1.3 billion shares.

In China, the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen fell 0.7 percent, while the Shanghai Composite Index .SSEC lost 0.6 percent.

Analysts cited a variety of factors for the sell-off in China including Monday's central bank pension reform guidelines urging low cost finance for the elder care industry. Several said the biggest factor was ongoing concern about comments by central bank governor Zhou Xiaochuan on speculative capital and rising debt levels in the financial sector.

Source: reuters

Nasdaq Edges Higher on Drugmakers Amid Longest Rally Since April

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The Nasdaq Composite Index edged higher in light trading, giving the index a fifth straight gain and its longest advance in 11 months, while travel-related shares dragged the Standard & Poor’s 500 Index lower after a deadly terrorist attack in Brussels.

Nasdaq rose 0.3 percent to 4,821.66, pushing its gains over five days to 2 percent. The rally has come amid the lightest trading volume of the year, and delivered just one day of gains for the technology-heavy index that topped 0.7 percent. Other major indexes were little changed after briefly erasing losses sparked by bombings at the Belgian capital’s airport and a subway station that killed at least 31 people.

The S&P 500 slipped 0.1 percent to 2,049.84 at 4 p.m. in New York, after briefly wiping out a 0.5 percent decline. The Dow Jones Industrial Average halted the longest winning streak since October.

Source: Bloomberg