Banks

Barclays: life in the old dog yet

Barclays, a former basket case of British banking, is beginning to look inspiringly mediocre. The bank has failed Bank of England stress tests less resoundingly than Royal Bank of Scotland. Investors believe its assets are worth only 10 per cent less than their book value, judging from the share price. Although Barclays’s legal team have […]

Continue Reading

Currencies, Equities

Scary movie sequel beckons for eurozone markets

Just as horror movies can spook fright nerds more than they expect, so political risk is sparking heightened levels of anxiety among seasoned investors. Investors caught out by Brexit and Donald Trump are making better preparations for political risk in Europe, plotting a route to the exit door if the unfolding story of French, German […]

Continue Reading

Currencies

Dollar rises as markets turn eyes to Opec

European bourses are mirroring a tentative Asia session as the dollar continues to be supported by better US economic data and investors turn their attention to a meeting between Opec members. Sentiment is underpinned by US index futures suggesting the S&P 500 will gain 3 points to 2,207.3 when trading gets under way later in […]

Continue Reading

Banks

Basel Committe fail to sign off on latest bank reform measures

Banking regulators have failed to sign off the latest package of global industry reforms, leaving a question mark hanging over bankers who complain they have faced endlessly evolving regulation since the financial crisis. Policymakers had hoped to agree the contentious new measures at a crunch meeting held in Chile this week, but a senior official […]

Continue Reading

Banks, Financial

Banking app targets millennials who want help budgeting

Graduate debt, rent and high living costs have made it hard for millennials to save for a house, a pension or even a holiday. For Ollie Purdue, a 23-year-old law graduate, this was reason enough to launch Loot, a banking app targeted at tech-dependent 20-somethings who want help to manage their money and avoid falling […]

Continue Reading

Categorized | Currencies

Asia markets cautious amid renewed dollar strength


Posted on November 24, 2016

Thursday 2.30am GMT

Overview

Asian markets outside Japan are treading cautiously in the wake of solid US data that bolstered the case for a near-term rate rise from the Federal Reserve and triggered another bout of dollar strength.

Standout

Japan was at the centre of the action on Thursday by way of news from the US. A solid rise in US durable goods orders and minutes from the Federal Reserve’s November meeting showing the case for a rate rise had strengthened boosted the dollar overnight and led to a hefty 1.2 per cent drop for the yen.

The Japanese currency was a further 0.2 per cent weaker on Thursday at ¥112.69 per dollar, a move that was supportive of Japanese shares, particularly exporters. The benchmark Topix was up 0.8 per cent, while the Nikkei 225 gained 1 per cent.

The yield (which moves inversely to price) on 10-year Japanese government bonds was up 1 basis point at the highest level since mid-February.

Currencies

The dollar index, a measure of the US currency against a basket of global peers, was up 0.1 per cent on Thursday at 101.82 and eyeing its 12th gain in 14 sessions. All other Asian currencies were weaker on Thursday, with Malaysia’s ringgit among the worst. Down 0.5 per cent at 4.4645 ringgit per dollar, the Malaysian currency was at its lowest since the Asian financial crisis in early 1998.

Other emerging Asian markets currencies were also weaker, including 0.4 per cent declines for Indonesia’s rupiah and Thai baht, and a 0.3 per cent drop for the Philippine peso.

China’s renminbi weakened to more than Rmb6.9 per dollar, marking a more than 10 per cent decline since the currency’s one-off devaluation in August last year.

Equities

Australia’s S&P/ASX 200 surrendered early gains to be 0.1 per cent weaker, while Hong Kong’s Hang Seng was down 0.5 per cent. China’s Shanghai Composite and the technology-focused Shenzhen Composite were both up 0.1 per cent.

For market updates and comment follow us on Twitter @FTMarkets