Banks

Carney: UK is ‘investment banker for Europe’

The governor of the Bank of England has repeated his calls for a “smooth and orderly” UK exit from the EU, saying that a transition out of the bloc will happen, it was just a case of “when and how”. Responding to the BoE’s latest bank stress tests, where lenders overall emerged with more resilient […]

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Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

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Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Banks

Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Currencies

China stock market unfazed by falling renminbi

China’s renminbi slump has companies and individuals alike scrambling to move capital overseas, but it has not damped the enthusiasm of China’s equity investors. The Shanghai Composite, which tracks stocks on the mainland’s biggest exchange, has been gradually rising since May. That is the opposite of what happened in August 2015 after China’s surprise renminbi […]

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Categorized | Currencies, Equities

US stocks set to extend record highs as oil climbs


Posted on November 22, 2016

Wall Street’s main equity gauges are poised for another round of record highs on Tuesday, as rising oil prices continue to buoy investor sentiment.

S&P 500 futures are up 0.2 per cent, Dow Jones futures rose 0.3 per cent and Nasdaq 100 futures are up 0.5 per cent an hour-and-a-half before the opening bell in New York.

The three indices finished at all-time highs on Monday, and their momentum carried through to equity markets in Europe and Asia. The pan-European Stoxx 600 gained 0.5 per cent, while Hong Kong’s Hang Seng rose 1.4 per cent. Japan’s Nikkei 225 closed 0.3 per cent higher after concerns of a strong earthquake in the morning faded.

Oil prices continued to rise on Tuesday as investors weigh the odds that Opec will reach a deal to reduce output. Brent crude was up 2 per cent to a session high of $49.96 a barrel, its highest point in nearly three weeks, while West Texas Intermediate gained 1.5 per cent to $49.20.

Meanwhile, bond markets and the US dollar are quiet. The yield on the 10-year US Treasury, which moves opposite to price, fell 2 basis points to 2.29 per cent, while the 2-year equivalent is up 2 basis points to 1.09 per cent. The dollar index, a measure of the currency against a basket of major peers, was flat at 101.05.