The dollar looks more mixed to start the day after yesterday’s rejection from fresh twenty-year highs
The US stock market was closed in honor of Labor Day on Monday after finishing the third negative week in a row. Stock index futures rose early on Tuesday, with the Dow Jones futures adding nearly 0.4% while the Nasdaq futures gain 0.5% in early pre-market deals.
Asian stocks were mixed on Tuesday, with the MSCI’s gauge of Asia-Pacific stocks outside Japan adding 0.47%. Investor sentiment has improved somehow as Chinese authorities signaled steps to support the struggling economy. The Chinese Cabinet’s planning agency promised to accelerate easier lending and other policies at the start of the week. The Shanghai Composite Index gained 1.36% and the Nikkei 225 in Tokyo finished just above the flat-line. Elsewhere, Australia’s central bank raised its benchmark lending rate by 0.5%, as expected, and said more rate hikes were planned. Sydney’s S&P-ASX 200 lost 0.38% following the decision.
After a drop on Monday, European stocks extended losses today as risk tones are fairly tepid. The lack of enthusiasm for now is keeping major indices on edge, with recession risks persisting in the region. The sentiment deteriorated after Russia’s Gazprom announced that gas flows to Europe via the Nord Stream 1 pipeline would be halted indefinitely. Today, Gazprom said that gas flows via Nord Stream 1 will not resume until Siemens Energy repairs faulty equipment.
Meanwhile, the dollar looks more mixed to start the day after yesterday’s rejection from fresh twenty-year highs. The euro and pound are slightly higher against the greenback while the yen is trading down to fresh lows since 1998. USDJPY exceeded the 141.00 figure to extend the ascent to the 141.50 zone. As a result, the daily RSI has entered overbought territory, but the pair is likely to continue the rally in the near term, targeting the 142.00 mark.
