Stocks rise on world markets as Korean tensions ease

Marco Green
September 1, 2017

While the pan-European Stoxx 600 was higher by 0.06%On Tuesday, market became restless on the back of report that North Korea had fired a ballistic missile over Japan, however USA markets closed in the red and Asian market traded mostly higher on Wednesday as nerves surrounding North Korea tensions subside.

Asian stocks are broadly higher as investors sought bargains.

Gasoline futures surged and crude oil was down, as flooding and damage from Tropical Storm Harvey shut almost a quarter of US refinery capacity, curbing demand for crude while raising the risk of fuel shortages. Prices have surged 18.6 percent so far this week. The euro EUR= was 0.63 percent lower to $1.1897, on pace for its worst day in more than three weeks. The index was still down 1.5 percent on the month, however.

New York's three main indexes ended in positive territory and the dollar, which has recently come under pressure, jumped to life.

Currency traders are now looking to US non-farm payrolls data for August, due on Friday, following data that showed USA consumer confidence surged to a five-month high in August as the labor market improved and house prices rose.

Other figures showed USA private-sector employers hired 237,000 workers in August, the biggest monthly increase in five months and an upbeat omen for payrolls on Friday.

The euro rose as much as 0.8 percent to $1.2070, its strongest level since January 2, 2015. Strong prints on GDP and ADP gave the USA dollar a lift and that continued throughout the session.

Against a basket of major currencies, the USA dollar edged ahead to 92.929 and away from a 2-1/2-year low of 91.621 touched on Tuesday.

The United Nations, in a statement drafted by the United States, condemned the North Korea's latest missile launch but held back any threat of new sanctions against Pyongyang. Also, the dollar was sitting around 110.50 yen, compared with levels around 108.50 yen seen Tuesday.

The euro climbed above $1.20 resistance for the first time since January 2015 as risk-off momentum did little to deter investors from adding longs.

ITV's shares regained part of the previous session's losses, ending up 2.6 per cent. ITV ended Tuesday with a loss of almost 5 per cent, caught up in a wider sell-off within the European media sector after German peer ProSiebenSat.1 slumped after cutting its outlook for TV advertising.

"Despite this the euro level does not appear particularly extreme and most importantly the European Central Bank has not been driving recent appreciation anyway", he added. US crude CLc1 was down 38 cents to $46.06.

Other reports by Click Lancashire

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