The Euro, the Fed and the U.K. Budget - This is What You Need to Know

Investors re-set equity market prices in the wake of the biggest decline for the U.S. dollar in five months

Author:: Edward Hardy
Publish date:: Nov 23, 2017 4:56 AM EST

This is what you need to know on Thursday

1. European stocks posted sharp early loses Thursday as investors re-set equity market prices in the wake of the biggest decline for the U.S. dollar in five months after minutes from the Federal Reserve's last rate decision revealed concern over the pace of inflation.

2. The euro jumped more than a point against the beaten-down greenback to trade at 1.1843 after both the dovish Fed minutes from Wednesday and a stronger-than-expected readings of private sector economic activity in France and Germany.

3. Britain's FTSE was also under pressure, falling 0.4% as the pound climbed past the 1.33 mark despite Wednesday's budget statement from the government which trimmed growth forecasts for the next five years and warned of sluggish wage growth and below-trend productivity.

4. Global oil prices slipped modestly from their near two-year peak in early trading, although support remains in place thanks to a 1.9 million barrel decline in domestic inventories reported Wednesday by the U.S. Energy Information Administration and a major reduction in volume from TransCanada Corp's 590,000 barrel a day Keystone pipeline following a leak in its northwestern United States route.

5. The British government is planning to restart its stalled sale of shares in the Royal Bank of Scotland Group plc before March 2019, according to the U.K. Treasury, Wednesday, Nov 22, with disposals expected to raise about £15 billion ($20 billion) over five years at today's valuations.

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