European Stocks & Wall Street Futures - This Is What You Need to Know on Tuesday

Global investors extend the so-called reflation trade amid a surging U.S. dollar

Author:: Edward Hardy
Publish date:: Oct 3, 2017 3:42 AM EDT

This is what you need to know on Tuesday:

European stocks open higher again Tuesday as global investors extend the so-called reflation trade amid a surging U.S. dollar and higher government bond yields.

The dollar was once again on the rise in the Asia session and into the start of European trading, rising 0.37% against a basket of six global currencies to trade at 93.61, the highest since early August, while benchmark 10-year U.S. Treasury note yields hit a 3-month high of 2.37% before paring that move to around 2.35%.

Japan's Nikkei 225 added more than 200 points to close at a two-year high 20,614.07 points thanks to a notably weaker yen and speculation of further fiscal support after this month's national election.

Global oil markets extended yesterday's sharp declines into the European session, with West Texas Intermediate crude futures for November delivery marked 0.92% lower at $50.41 per barrel after Monday's 2.1% decline.

U.S. futures suggest that Wall Street is heading for another record setting day after all three benchmarks closed at all-time highs again last night.

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