Global equities ripping higher

Ms. Yellen’s message came as a relief to equity investors, as stocks’ rise to historic highs has been helped by cheap money. The Bank of Korea raised its 2017 growth forecast Thursday but left rates unchanged as expected—signaling it is in no rush to change its stance despite an improved outlook—after the Bank of Canada raised rates overnight.

At the midday break in Hong Kong, the Hang Seng Index was up 1.1% at a two-year intraday high. Korea’s Kospi was up 1.1% after the rate decision. Samsung Electronics ,which dominates the index, was recently 1.8% higher.

Ms. Yellen’s comments sent the U.S. dollar weaker overnight, and while it recovered some early in Asian trade, the declines resumed in the late morning. The WSJ Dollar Index, which tracks the U.S. dollar against 16 other currencies, was down 0.2% at 87.86, moving below its New York close, which was the fourth-lowest of the year.

“The big headline risk is U.S. inflation data and you are seeing a bit of positioning” for a weaker dollar, said Stephen Innes, head of trading for Asia at forex broker Oanda.

WSJ

 

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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