Dollar index rallies to a fresh 4-year high

Monday, September 29, 2014

Asian equity markets extended losses overnight. The Hang Seng plunged by more than 450 points (-1.95%) towards 23,200, as disappointing market data weighed heavily on market sentiment. The Nikkei index edged higher to retest 16,300, climbing near 0.5%.  China's industrial profits retreated sharply 0.6% in August y/y, reversing from a 13.5% increase in July. According to Thomson Reuters, riot police advanced on Hong Kong democracy protesters in the early hours of Monday, firing volleys of tear gas after launching a baton-charge in the worst unrest in the area since China took back control of the former British colony two decades ago.

Hang Seng Index 

HSI Index (Hong Kong Hang Seng I 2014-09-29 09-14-05

The US dollar started the week close to a 6-year high against the yen and hit a fresh 4-year high against a basket of currencies, following the recent robust USD GDP data for Q2 2014.

USD Index hit a fresh 4-year high

DXY Curncy (DOLLAR INDEX SPOT)   2014-09-29 09-13-45

European equity markets opened today’s session fairly mixed. Investors will be keeping an eye on the release of Eurozone’s business climate and consumer sentiment as well as Germany’s CPI data for further direction.

Energy: Brent front month futures fell sharply in early trading this morning towards $96 per barrel, while the WTI front month contract has also been under pressure heading towards $92.50 per barrel.  

 

Events for today:

 

0930

UK

Aug

BoE Consumer Credit

1000

EZ

Sep

Bus Climate & Con Sentiment

1300

DE

Sep

CPI Preliminary

1330

US

Aug

PCE & Personal Income

1500

US

Aug

Pending Home Sales

1530

US

Sep

Midwest Manufacturing

 

All times UK Local Time

More from: Myrto Sokou