EU Markets Open Higher
CAD Pairs Rally After BoC Rate Hike
Oil Prices Plummet
This week in a nutshell: Markets Brush Off Geopolitical Tensions
Global equities traded mostly higher on Tuesday, with most indices brushing off geopolitical tension as U.S. traders returned to their desks after a Labor Day holiday. Meanwhile, bitcoin and other leading cryptocurrencies slumped this week after China banned individuals and organizations from raising funds through initial coin offerings, saying the practice constituted illegal fundraising.*
Thu, September 7: In Today’s Markets…
1. EU Markets Open Higher After US Debt Limit Deal
European markets started the day on a bullish note on Thursday morning after U.S. congressional leaders agreed to extend the federal government’s borrowing limit until December. Specifically, President Donald Trump backed a deal with congressional Democrat leaders to attach hurricane relief money to a three-month extension of both government funding and debt limit. The surprise deal eliminated fears of a near-term government shutdown and pushed stock markets higher.**
2. CAD Pairs Rally After BoC Rate Hike
The Canadian dollar skyrocketed to two-year highs after the Bank of Canada unexpectedly raised its key interest rates. The Canadian dollar scaled to $0.8194 against the U.S. dollar on Wednesday, marking its highest level since June 2015. The Bank of Canada raised interest rates by 0.25 percent to 1 percent on Wednesday, while leaving the door open to more rate hikes in 2017. Today the CAD held firm at 0.8180 as of 6:45 GMT.
The euro also held firm on Thursday ahead of the European Central Bank policy meeting, edging 0.1 percent higher against the greenback to last trade at $1.1925 as of 6:45 GMT. It should be noted that the euro has lost some momentum since hitting a 2-1/2 year peak as it was weighed down by fears that a stronger euro could slow down the ECB’s plans to reduce its bond-buying stimulus.***
3. Oil Plummets On Fears That Hurricane Irma Could Hit Crude Shipments
Oil prices dipped today over fears that Hurricane Irma could interrupt crude shipments in the Caribbean and out of the United States. Prices were also subdued on news that Libyan output began to recover from disruptions. It should be noted that rising demand in the United States in the wake of Hurricane Harvey provided some support for oil prices. Crude Oil WTI (USOIL) was last seen trading 0.4 percent lower while Brent Oil (CL_BRENT) dipped 0.4 percent as of 7:00 GMT.***
*Source: Seeking Alpha
**Source: CNBC
***Source: Reuters
