Global equities rally as US hurricane damage concerns abate

September 12, 2017

By IFCMarkets

Dow retakes 22000 mark

US stock indices advanced on Monday as geopolitical tensions subsided after North Korea refrained from a missile launch over the weekend and Hurricane Irma proved less destructive than feared. The dollar recovered: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, rose 0.6% to 91.911. S&P 500 closed 1.1% higher settling at record high 2488.11, led by technology and financial stocks. The Dow Jones industrial average jumped 1.2% to 22057.37. The Nasdaqcomposite index gained 1.1% closing at 6432.26.


Insurance stocks lead European indices higher

European stock indices rebounded on Monday as investors’ risk appetite recovered after Pyongyang didn’t fire a missile and the damage Hurricane Irma was likely to cause US economy appeared not as severe as feared. Both the euro and British Pound reversed course and slipped against the dollar. The Stoxx Europe 600 index rose 1% led by insurance stocks. The DAX 30 jumped 1.4% to 12475.24. France’s CAC 40 rose 1.2%. UK’s FTSE 100 added 0.5% to 7413.59. Indices opened 0.1%-0.5% higher today.

Asian stocks rise

Asian stock indices are mostly rising today. Nikkei rose 1.2% to 19776.62 as yen weakness against the dollar continued as demand for haven assets subsided. Insurers and financial stocks were the best performers. Chinese stocks are mixed after the central bank scrapped two measures instituted earlier to support the yuan : the Shanghai Composite Index is up 0.1% while Hong Kong’s Hang Seng Index is 0.02% lower. Australia’s All Ordinaries Index is up 0.5% despite stronger Australian dollar against the greenback.

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Oil dips

Oil futures prices are inching lower today as market participants assess the damage from Hurricane Irma with refineries restarting operations after Hurricane Harvey. Crude oil prices rose on Monday as traders were concerned about Hurricane Irma’s impact on energy demand. November Brent crude rose 0.1% settling at $53.84 a barrel on London’s ICE Futures exchange on Monday.

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