U.S. Dollar Mostly Lower; Sterling Gains
The U.S. dollar was mostly lower Wednesday, with sterling leading the way. Corporate acquisitions, or talk of them at any rate, with the help of the second consecutive rise in the Halifax home price index, and as-expected manufacturing data (up 0.3% in July) helped sterling bounce 2 cents off Tuesday's low to test $1.55 Wednesday before running into offers.
The selling pressure seen on the euro since Monday's move to almost $1.2920 continued, but the momentum appears to be fading and some near-term recovery toward $1.275 seems likely. Japanese officials appear to be stepping up their rhetoric, but the market hasn't blinked, taking the dollar down to new multi-year lows. The JPY84.00-20 area looks like the near-term cap.
Global equity markets were weaker. The MSCI Asia-Pacific Index was off 1%. The Nikkei led the regional decline with a 2.2% decline, sparked in part by heightened concern about the impact of the yen's rise on corporate sales and profits. The Philippine index was one of the region's bright spots in the region with a 0.8% rise, led by consumer services and basic materials; we continue to note good foreign demand for Philippine shares.
European bourses were off a little more than 0.75% near midday in London. Financials are leading to the downside amid heightened funding concerns. Capturing the attention Wednesday, the National Bank of Greece announced intentions to raise about $3.6 billion in new capital (Greek financials are off about 4.5% while the overall Athens Stock Exchange was off 2.5%).The heightened concerns that are weighing on European financial shares wereo being felt in the bond market. Ireland and Portugal are paying historic widen premiums over Germany with Wednesday's moves. Greece is paying the most since before the early May European Union/International Monetary Fund package. Portugal's bond auction went off without much fanfare and the spread narrowed a bit. The U.S. Treasury auctions $21 billion of 10-year notes.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV