Dollar holds ground
US markets were closed on Monday for a holiday. Both the S&P 500 and the Dow Jones industrial average ended last week 4.3% higher for the week as concerns about faster rate hikes abated. The dollar strengthening persisted: the live dollar index data show the ICE's US Dollar Index, a measure of the dollar’s strength against a basket of six rival currencies, inched up 0.01% to 89.2. Futures on main US stock indices slipped yesterday and point to the lower opening today.
European recovery fades
European stock indices pulled back on Monday in thin trading with the US and China’s markets closed for holidays. Both the euro and British pound continued the slide against the dollar. The Stoxx Europe 600 index fell 0.6%. The DAX 30 lost 0.5% to 12385.60. France’s CAC 40 closed 0.5% lower and UK’s FTSE 100 lost 0.6% to 7247.66. Indices opened 0.5%-0.7% higher today.
Asian stocks slip
Asian stock indices are mostly lower today. Nikkei lost 1.3% to 21222.00 despite accelerated yen weakening against the dollar. China’s markets are closed for Lunar New Year holidays. Hong Kong’s Hang Seng Index is down 0.2%. Australia’s All Ordinaries Index is 0.01% lower with Australian dollar extending gains against the US dollar.
Brent up on geopolitical risk
Brent Oil Futures are edging lower today on the back of the stronger dollar. Prices rose Monday on increasing Middle East tensions after Israel’s Prime Minister Benjamin Netanyahu on Sunday warned that his country will directly strike Iran if Tehran uses Syria to test his country. April Brent crude settled 1.1% higher at $65.56 a barrel on Monday.