Tuesday, 22 August 2017

Australian Shares Rose, The Euro Edged Dow

Australian shares rose 0.4 percent, while Japan's Nikkei stock index finished down 0.1 percent.
The dollar steadied against its Japanese counterpart, after slumping to four-month lows last week, up 0.3 percent at 119.25.
The euro edged down 0.1 percent to $1.1801, but rose 0.2 percent to 128.92 yen.

The dollar index, which tracks the greenback against a basket of six major rivals, was up 0.1 percent to 93.218. 

The dollar has recently faced selling pressure from tepid U.S. inflation data which have fed into expectations the Federal Reserve will adopt a patient approach to further monetary tightening. 

Political turmoil in Washington has also hampered the greenback as investors have begun to doubt President Donald Trump's ability to implement much of his aggressive stimulus and tax reform measures. 

"The dollar was the loser against all of its pairs and I think that's broadly reflective of fading expectations of what the Fed might do," said Bill Northey, chief investment officer at U.S. Bank Private Client Group in Helena, Montana.

Expectations of what might emerge from the Fed's annual conference in Jackson Hole, Wyoming are also "relatively tempered," Northey said. 

Fed Chair Janet Yellen is scheduled to speak at the conference, but central bank observers do not expect her to give new guidance on policy. 

European Central Bank President Mario Draghi will not deliver any new policy message at Jackson Hole, two sources familiar with the situation said. 

Crude oil prices firmed, lifted by indications that supply is gradually tightening, especially in the United States. 

Brent crude futures added 23 cents to $51.89 per barrel, while U.S. crude rose 18 cents to $47.55.

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