EU Markets Open Higher While Negative Brexit Sentiment Weights

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EU Markets Open Higher

Fuel Markets Rally

Dollar Hits 2-Week High

 

This week in a nutshell: Tensions Escalate As N.Korea Fires Ballistic Missile Over Japan

The dollar hit a four-month low against the yen on Tuesday after North Korea fired a missile that passed over northern Japan, ramping up global tensions. Oil prices slid on Wednesday but gasoline spiked to its highest since mid-2015 as flooding caused by Hurricane Harvey knocked out almost a quarter of U.S. refineries, boosting demand for crude but raising fears of fuel shortages.*

 

Thu, August 31: In Today’s Markets…

1. EU Markets Open Higher While Negative Brexit Sentiment Weights

European markets started the day on a bullish note on Thursday, as investors focused on upcoming data and global political developments. U.S. politics and North Korea are expected to be in focus while markets will also follow the conclusion of the third round of Brexit talks closely. Negative Brexit sentiment has pushed GBP pairs lower this week with GBPEUR trading at five year lows. It should be noted that strong UK economic data could provide some support for the sterling in the following days.**

 

2. Global Fuel Markets Rally As Harvey Devastates The Gulf

Tropical Storm Harvey has devastated the Gulf, flooding U.S. refiners and shutting down fuel pipelines. The storm has thus far forced the closure of nearly a quarter of U.S. refining capacity. U.S. gasoline prices surged in overnight trading. The week-long rally in Crude (USOIL) and Brent was further supported by Colonial Pipeline’s decision to shut its main lines to the Northeast. It is important to note that this vital gasoline artery can carry up to 3 million barrels per day.***

 

3. Dollar Hits Two-Week High Against The Yen On Upbeat U.S. Data

The dollar hit a two-week high versus the yen (USDJPY) on Thursday, as strong U.S. economic data bolstered expectations for a solid U.S. jobs report later this week. The greenback rallied against its peers after the U.S. Commerce Department revised up gross domestic product to a 3.0 percent annual rate for the second quarter. What is more, the ADP National Employment Report revealed that U.S. private-sector employers hired 237,000 workers in August which marks the biggest monthly increase in five months. In the wake of such solid economic indicators, markets expect a solid U.S. August non-farm payrolls figure while chances of a rate hike by the Federal Reserve in December may start to increase.

 

*Source: Seeking Alpha
**Source: CNBC
***Source: Investing.com

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