Share

Dollar, equity markets up as focus turns to banker gathering

Hong Kong - The dollar edged up on Friday ahead of a much-anticipated central bankers' meeting later in the day, while equity markets also advanced at the end of a broadly upbeat week.

The rises came despite ongoing ructions in Washington where President Donald Trump on Thursday berated top members of his Republican party, days after threatening to shut down the government and rip up a key trade deal with Canada and Mexico.

His ongoing battle with Capitol Hill has fanned fears the tycoon will not be able to push through his promised tax cuts, deregulation and infrastructure spending programme, which many believe would help fire up the US economy.

Heads of central banks from around the world are descending on Jackson Hole, Wyoming, for their annual symposium but investors are focusing on Federal Reserve boss Janet Yellen and European Central Bank (ECB) head Mario Draghi.

While not expecting any major announcements from either, their remarks will be pored over for clues about their plans for monetary policy in two of the world's biggest economies.

The euro has rallied in recent weeks on speculation the ECB will begin to wind down its crisis-era stimulus measures as the eurozone continues to improve, while still-soft US inflation has dented expectations of further Fed interest rate hikes this year.

However, the single currency has dipped back slightly this week as dealers steel themselves for the weekend's meeting.

Trump's battles

In share trading Tokyo's Nikkei ended the morning session 0.5% higher thanks to a weaker yen, while Hong Kong rose 0.5%, putting it on course for a fourth-straight day of gains.

Shanghai added 0.9% and Seoul was 0.2% higher while Wellington, Taipei and Manila were also up.

However, Singapore shed 0.3% and Sydney was flat.

Greg McKenna chief market strategist at AxiTrader, said: "Markets are caught between anticipation of what ... Yellen and ... Draghi might say at Jackson Hole tonight and fatigue with the lack of action from the White House and Congress to achieve their headline goals."

Trump turned up the heat Thursday on Republican leaders in Congress, accusing them of foot-dragging on his key priorities, in an intensifying feud that puts his policy agenda in jeopardy.

He tweeted against Senate Republican leader Mitch McConnell and House Speaker Paul Ryan after threatening Tuesday a government shutdown if Congress does not fund his border wall with Mexico.

The split comes as lawmakers prepare to return from recess needing to agree funding for the government into next year and also raise the debt ceiling to avert a devastating default. Fitch has already warned it would review its US sovereign rating if the government was shut down.

On oil markets prices ticked up as Hurricane Harvey barrelled towards the crude-rich Texas coastline, causing the closure and evacuation of platforms. The Gulf Coast is home to around half the United States' refining capacity.

Both main contracts were up around 0.7% in early Asian business.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
908.75
+1.3%
Palladium
1,014.28
+1.3%
Gold
2,221.04
+1.2%
Silver
24.86
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders