Banks lift stocks, dollar holds near 14-year peak

LONDON European stocks edged higher on Friday helped by banks after two regional bellwethers settled U.S. mortgage securities probes, while oil and the dollar were on the back foot in light trading ahead of the Christmas break. In another boost to European financials, a bailout for Italy’s oldest bank Monte dei Paschi was approved as the country’s government looks to end a protracted banking crisis that has gummed up the economy. European shares were up 0.1 percent with euro zone banks .SX7E up 0.7 percent and comfortably outperforming broader markets. An index of Italian lenders .FTIT8300 was up 1.3 percent. While Monte dei Paschi shares were suspended from trading, Italian […]

Dollar basks in yield glow, Nikkei at one-year peak

SYDNEY The U.S. dollar held near 14-year peaks on Wednesday as global yield spreads moved inexorably in its favor, while a falling yen lifted Japanese shares to a one-year top. The Nikkei .N225 added 0.3 percent in thin trade, while Australia’s main index climbed 0.6 percent to its highest in 17 months after Wall Street racked up more records. Japan’s government upgraded its overall assessment of the economy on Wednesday, echoing a more upbeat view from the Bank of Japan’s delivered the day before. The dollar reveled in its rapidly widening yield premium, with the Federal Reserve set on a tightening course even as its peers in Europe and Japan […]

Chinese Yuan Headed For Biggest Annual Drop In 20 Years As Capital Outflows Accelerate

China’s capital outflow could accelerate further in coming months as the yuan depreciates and investors gain concerns about a strengthening dollar. The warning from Banny Lam, head of research at CEB International Investment Ltd. in Hong Kong, came Monday, just days after Goldman Sachs Group warned China’s capital outflows are accelerating, with $69.2 billion reported leaving the country in November, nearly 20 percent more than in preceding months. “Capital outflows and yuan depreciation will continue or even worsen by the end of this year and the first quarter of 2017, as investors are getting increasingly concerned about a stronger dollar and China’s economic conditions,” Lam told Bloomberg. Goldman said the […]

Dollar, yields, stocks all cool their jets

LONDON Stocks, the dollar and bond yields all drifted lower on Monday as investors cashed in on some of their recent bets that the anticipated fiscal boost from the incoming Trump administration will support riskier assets at the expense of bonds. Wall Street hit record highs and the dollar rose to a 14-year peak last week, tempting investors to cash in and book some pre-holiday profit as the last full trading week of the year got underway. The Japanese yen bounced back strongly from last week’s mauling, helped by strong Japanese export data, as the Bank of Japan began a two-day policy meeting at which it is widely expected to […]

Hurdles emerge for stocks after rally

NEW YORK Benchmark U.S. stock index rallies, in anticipation of fiscal stimulus measures by the incoming administration of President-elect Donald Trump, could also be laying the seeds for equity market troubles from a stronger dollar and rising bond yields. The S&P 500 stock index .SPX has surged over 8 percent since the Nov. 8 election, due in large part to sectors that are expected to benefit from an inflationary policy. The S&P financial sector .SPSY has led the charge, with a gain of more than 17 percent. “We are putting fuel on the fire here potentially, because nothing has actually happened, everybody is acting like it is already happening,” said […]