Kuwait issues travel warning over Lebanon protests    Erdogan says not a problem for Turkey if Syrian forces are in areas cleared of Kurdish forces    Pompeo seeks to assure Israel US focus stays on Iran 'threat'    Egypt says strategic wheat reserves enough to cover its needs until February    Egypt keen to support DR Congo: Ambassador    Ratcliffe to rely on young talents to help Nice grow    Social media facilitates racist abuse, says Leicester's Morgan    Criticism of Man Utd transfer strategy an insult to club-Woodward    US vaping-related deaths rise to 33, cases of illness to 1,479    Cairo metro back to normal operations following hours-long power disruption    Egypt's Pope Tawadros opens Saint Mary, Mar Youhanna Church in Belgium    Apache Corp. plans to increase investments in Egypt: CEO    Egypt's Irrigation minister reviews latest developments of Ethiopia's Renaissance Dam in Budapest    UK, EU clinch new Brexit deal    U.S. Trump defends Syria pullout, condemned by House in bipartisan vote    'Passports should be valid for six months,' Egypt's foreign ministry advises citizens planning travel abroad    Unpaid work hits 35% of Egypt's GPD, but still not included in economic calculations: IMF    Egypt's FM Shoukry holds talks with Lithuania's govt. chancellor    Egypt's c.bank Oks new regulations tightening control on micro-financing    Dollar, pound tread water, Aussie bolstered by jobs report    European stocks set for cautious open ahead of crucial EU summit    Egypt in talks with World Bank over solid waste management loan    Grand Nile Tower Arts & Cultural Centre launches second round    AUC students win prestigious award at SensUs 2019    Egypt's coach Hossam El-Badry satisfied with winning start despite technical problems    Hundreds released    Luxor's new discoveries    Moroccan film Nomades scoops awards in Alexandria Film Festival    Toshiba's JV with Egyptian Elaraby opens regional HQ in South Africa    Six authors vie for Booker prize 2019, Atwood in the lead    In Photos: A sneak peek into rehearsals for the Cleopatra ballet world premiere    Sisi, Ethiopia's PM to meet in Moscow to discuss GERD issue    Sisi: army engaged in attrition phase against terrorism in Sinai since 2013    10K fans to attend Egypt's friendly against Botswana in Alexandria: EFA    Sisi, Ethiopia's PM agree to overcome obstacles in Nile dam talks    Farwell to Egyptian comic actor Talaat Zakaria    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Euro Under A Cloud In Asia, Stocks Sit On Gains
Published in Amwal Al Ghad on 11 - 06 - 2014

The euro came under mounting pressure on Wednesday as the European Central Bank's embrace of negative interest rates encouraged flows out of the zone, while Asian shares consolidated near recent highs.
The single currency was slipping across the board as investors looked to borrow euros at super-low rates and buy higher-yielding assets abroad, the so-called carry trade.
"The chase for yield looks like it has further to run," said Shane Oliver, head of investment strategy at AMP Capital.
"The ECB's actions provide a reminder global monetary conditions remain very easy which is supportive of relatively high yield assets and growth assets generally."
In contrast the dollar found support in a run of improving U.S. economic data which pushed up Treasury yields and stoked speculation the Federal Reserve might sound less dovish on policy when it meets next week.
That diverging outlooks shoved the euro down to $1.3536 and further away from a $1.3668 peak scored at the start of the week.
It also hit a seven-month trough on the higher-yielding Australian dollar and to near its lowest against the pound since late 2007.
Action in equity markets was more muted with many indices already having come a long way. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.12 percent from a three-year peak.
The MSCI index of emerging markets has also been on a roll to reach its highest since May 2013, in part on speculation the ECB's increasingly aggressive easing will encourage fund flows to the emerging world.
Japan's Nikkei ended up 0.5 percent aided by MSCI's decision to remove South Korea and Taiwan indexes from its review list for reclassification to developed markets, keeping them in the emerging markets classification.
There had been speculation Tokyo equities would take the brunt of rebalancing if Korean and Taiwanese shares were reclassified to developed markets.
Moves had been minor on Wall Street with the Dow up 0.02 percent, while the S&P 500 down 0.02 percent and the Nasdaq Composite 0.04 percent firmer.
RISING YIELDS
The flow of U.S. data has been bright enough to soothe worries over the economy after a disappointing first quarter. Tuesday's releases showed small business confidence and job openings reaching heights not seen since 2007.
That in turn has led the futures market 0#FF: to nudge forward the likely timing for a first rate hike from the Federal Reserve, though that is still well into 2015.
Likewise, U.S. Treasury yields have reversed decisively higher with 10-year paper paying 2.646 percent compared to a trough of 2.402 percent just two weeks ago.
"The bull moves in bonds that began early this year are now officially over," said William O'Donnell Treasury strategist at RBS Markets. "As such, I still expect cash 10-years to trade at 2.80 percent over the coming month."
The prospect of higher yields has offered some support to the U.S. dollar which held at 80.811 against a basket of currencies, a long way from May's low of 78.906.
Still, the broader moves were more about euro weakness than dollar strength. Sales of euros for yen, for instance, were sizable enough to push the yen up on the dollar. The euro fell to 138.44 yen and the dollar to 102.25.
The adoption of negative deposit rates by the ECB has sparked talk reserve managers at other central banks were trimming their euro holdings, and that the very low yields offered by peripheral euro zone debt was finally discouraging demand for the paper.
In commodities, gold was firm at $1,261.50 an ounce as a breakdown in strike talks in South Africa buoyed palladium and platinum.
Brent oil gained 21 cents to $109.73 a barrel, while U.S. crude prices added 12 cents to $104.47.
Source : Reuters


Clic here to read the story from its source.