Main Market Movers
North Korea’s missile launch sent bearish waves through equity markets. European stocks lead the losses with German’s DAX 30 losing 1.4% of its gains and France’s CAC 40 giving up 1.2% of its gains.
Asian stocks are feeling the nerves shooting through these risker assets. The HSI is down 0.3% while the SPI has lost 1.17%. The stronger Japanese yen has sent Japanese stocks lower.
US equities are similar, caught in a sea of red as investors favour risk-off assets. The S&P 500 is 0.8% lower while the tech-heavy Nasdaq is 0.9% lower. Watch out for US equities at the opening bell as US investors may drag stocks lower.
The euro is gaining against the dollar, at its highest level since January 2015. Inflation data from the eurozone may show prices inched up for August.
The dollar has fallen to a 4-month low against the Japanese yen in the wake of the missile launch. The greenback has also weakened since Hurricane Harvey struck the Texas coastline and after Fed chair Janet Yellen failed to clarify the body’s monetary policy plan last Friday.
The euro could strengthen further against the dollar thanks to an upward sloping moving averages curve.
The Japanese yen tends to benefit in times of geopolitical risks or tensions. The currency strengthened against most major currencies after the missile strike.
The Swiss franc added 0.6% as investors scrambled to push bullish bets into safe-haven assets.
Flood waters from Tropical Storm Harvey have shut down refiners across the Texas coastline. However, the decrease in demand has offset the decline in supplies.
Rising moving averages mean crude prices could move up.