· The U.S. dollar rose on Wednesday as stocks fell and after European data signaled that economic growth could be flagging across the euro zone, denting the euro.
The S&P 500 was on track for a sixth day of losses as weak forecasts from chipmakers added to concerns about the impact on earnings from tariffs and a slowdown in China’s economy.
A flight to safety boosted the dollar index, which rose 0.54 percent against a basket of six rival currencies to 96.438. The Japanese yen, another safe-haven currency often bought when broader markets slide, strengthened over the day to 112.23, up 2 percent from a trough on Oct. 4.
· Euro zone business growth slowed more than expected this month, a widely watched Purchasing Managers Index (PMI) survey showed. German private-sector growth fell to its lowest in more than three years, and manufacturing in France hit a 25-month low, according to other surveys.
Against the dollar, the euro fell as much as 0.8 percent, breaking below the technically significant level of $1.14. It was last at $1.139 and headed towards its biggest daily loss since Sept 27 .
· The British pound hit a six-week low of $1.287 earlier in the day as markets awaited the outcome of Prime Minister Theresa May’s meeting with Parliament after talk of a leadership challenge over her Brexit strategy.
· U.S. factories have raised their prices because of tariffs, although inflation has appeared modest or moderate in most parts of the country, the Federal Reserve said on Wednesday in its latest report on the economy.
The U.S. central bank also said in its latest “Beige Book” report that the economy appeared to be growing modestly to moderately and that businesses across a number of industries had reported labor shortages.
· President Vladimir Putin said on Wednesday that Russia would be forced to target any European countries that agreed to host U.S. nuclear missiles following Washington’s withdrawal from a landmark Cold war-era arms control treaty.
· South Korea’s economy grew slightly slower than expectations in the third quarter, and in line with the previous three-month period, as a plunge in domestic investment offset the positive effects from government stimulus and resilient exports.
Gross domestic product grew a seasonally adjusted 0.6 percent in July-September from the previous quarter, the Bank of Korea estimated on Thursday, just missing the median forecast of a 0.7 percent gain in a Reuters poll.
· Trump said he believed North Korea had taken specific steps toward denuclearization, despite widespread doubts about Kim's willingness to abandon his arsenal
· Oil prices rose modestly on Wednesday, rebounding after several days of weakness as a much bigger-than-expected drawdown in U.S. gasoline and diesel inventories augured a seasonal increase in refining demand.
U.S. West Texas Intermediate crude futures CLc1 rose 39 cents to settle at $66.82 a barrel, up 0.6 percent. The market bounced around during the day, posting gains into the early afternoon before pulling back. More than 710,000 WTI contracts changed hands on Wednesday, exceeding the 10-month daily average of about 576,000 contracts, according to Eikon.
Brent crude LCOc1 settled at $76.17 a barrel, down 27 cents, or 0.4 percent. The global benchmark is more affected by the outlook for world supply, and Saudi Arabia’s saying it plans on boosting output may reduce buying interest in Brent.
Reference: Reuters
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