Dollar benefits as sterling swings wildly on Brexit votes

Tech stocks lead rebound as Boeing tumbles anew

Tech stocks lead rebound as Boeing tumbles anew

The dollar index fell 0.47 percent, with the euro up 0.4 percent to $1.1331.

The dollar index, a gauge of the currency's strength against six major counterparts, stood little changed at 96.505. The significance of such a passage is that if it were to pass, the British Parliament would then vote the next day (Thursday) on whether to instruct the Government to request a postponement of the Brexit departure date beyond 29 March 2019 from the European Union.

United States producer prices edged barely higher in February, in the smallest annual increase since June 2017, the latest sign of tame inflation that supports the Federal Reserve's "patient" approach to future interest rate hikes.

Oil futures rallied more than 1 percent as an unexpected drop in USA crude inventory and a forecast of slower-than-expected supply growth from the world's top crude producer boosted prices.

USA stocks halted a three-day rally, while the dollar surged amid concern a trade deal with China remains elusive.

Gold hit almost a two-week high as tepid U.S. economic data reinforced views the Fed would be patient on monetary policy.

Sterling rose 1.72 percent to $1.3298. Tepid inflation and disappointing producer price data this week support the Fed's stance of keeping interest rates on hold, denting the dollar.

World equity markets advanced broadly on Wednesday after USA data again showed risk-friendly low inflation, which weakened the dollar, while Boeing shares gained even as the United States said it would ground the company's 737 MAX aircraft.

US 30-year bond yields were up at 3.011 percent from 2.99 percent on Tuesday.But yields on both 10-year notes and 30-year bonds have fallen in six of the last eight sessions. Chinese stocks turned lower: theShanghai Composite Index is down 1.1% and Hong Kong's Hang Seng index is 0.5% lower.

The rationale: Britain just can't seem to agree on a Brexit deal - and the uncertainty will keep bruising sentiment toward the most-volatile Group-of-10 currency this year, said Jingyi Pan, strategist at IG Asia Pte in Singapore.

The British Pound remains the big story in the market today, with the British Parliament voting for a second time to reject the European Union's proffered divorce deal on Tuesday only 15 days ahead of its scheduled departure.

US Treasury yields rose after falling in the previous session as risk appetite improved and equity markets steadied.

In afternoon trading, USA 10-year note yields rose to 2.612 percent from 2.605 percent late on Tuesday.

West Texas Intermediate crude gained 0.6 percent to $58.58 a barrel.

The yield on 10-year Treasuries gained one basis point to 2.63 percent.Germany's 10-year yield gained one basis point to 0.07 percent, the highest in more than a week.Britain's 10-year yield advanced three basis points to 1.227 percent, the highest in more than a week.The spread of Italy's 10-year bonds over Germany's decreased three basis points to 2.4582 percentage points.

Gold futures slumped 1 percent to $1,296.40 an ounce.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.