Dollar dishes the pain as selloff rumbles on



*

Stocks slide again as concerns resume

*

Dollar pushes back towards 20-year high

*

Pressure back on UK bonds, pound after brief BoE respite

*

China says stabilising currency top priority

By Marc Jones

LONDON, Sept 29 (Reuters) - Investors pedalled into another cycle of selling on Thursday as the dollar tightened its stranglehold on currency markets, recession fears sapped stocks and bonds suffered more interest rate pain.

Europe's morning was rough. The STOXX 600 share index .STOXX was still down 1.3% having opened 2% lower and both the euro EUR= and the pound GBP= , hammered over the last week by UK debt concerns, were struggling again.

China currency intervention talk was gathering momentum too while Europe's government bond markets were braced for the highest German inflation reading since the 1950s.

Gilt selling had also resumed a day after the Bank of England had dramatically intervened to try and quell the storm surround the UK government's new spending plans.

"The market wouldn't mind some stability, it has become a little bit unpredictable," said Barings Investment Institute's Chief European strategist, Agnes Belaisch.

She said investors were now seeing "incoherence" in the UK with government spending as the BoE tries to rein in inflation, while everywhere else the focus is on how high central banks are prepared to go with interest rates.

Germany's 10-year government bond yield, the benchmark of the euro zone, jumped as high as 2.27% DE10YT=RR , as pacey numbers from North Rhine-Westphalia pointed to a double-digit inflation figure for the country as a whole shortly.

The UK 10-year gilt yield, which drives UK borrowing costs, rose 15 bps to 4.16% after falling almost 50 bps the day before due to the BoE's sudden intervention, although the 30-year yield being targeted by the central bank did see another dip. GB10YT=RR GB30YT=RR

UK Prime Minister Liz Truss defended her new economic programme that has sent sterling to a record low this week and left the UK's borrowing costs close to Greece's - saying it was designed to tackle the difficult situation Britain was now in.

"We are facing difficult economic times," Truss, who only took over as UK Prime Minister this month, said on local BBC radio. "I don't deny this. This is a global problem. But what is absolutely right is the UK government has stepped in and acted."

'BIT OF A MESS'

Zooming back out, it was still about the dollar which has crushed currencies virtually everywhere this year, as well as the impact of Russia's invasion of Ukraine.

Speaking with reporters in London on Wednesday, veteran Federal Reserve policymaker Charles Evans gave no indication that any of the recent FX and bond market drama would blow the U.S. central bank off its rate hike course.

"We just really need to get inflation in check," Evans said, backing lifting the Fed's rates - now at 3%-3.25% - to a range of 4.5%-4.75% by the end of the year or March.

Thursday's moves saw the U.S. dollar index =USD , which measures the currency against sterling, the euro and four other peers, rise back towards its recent 20-year high again having had its worst session in 2-1/2 years on Wednesday.

Overnight, China's yuan had fallen again too, although it stayed just off recent post-financial crisis lows, as China's central bank said stabilising the foreign exchange market was its top priority and on reports of potential FX intervention too.

CNY=CFXS

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ended the day virtually flat, although Japan's Nikkei .N225 did manage a near 1% rise.

S&P 500 futures ESc1 pointed to Wall Street falling as much as 1% later with more Fed policymakers also due to speak.

The interest rates investors now get on the government's Treasury bonds - which are considered virtually risk-free if held to maturity - now dwarf the S&P 500's dividend yield.

Weekly jobless claims data are expected to show a modest rise, and final economic growth figures for the second quarter are also due. A second estimate of the government last month had shown the economy contracted at 0.6%, a more moderate pace than initially thought.

Recession angst combined with supply issues and the strong dollar meant oil prices see-sawed after gaining more than $3 in the prior session.

Goldman Sachs cut its 2023 oil price forecast this week, citing expectations of weaker demand and a stronger U.S. dollar, but said global supply issues reinforced its long-term view that prices could rise again.

Brent crude futures LCOc1 were last up at $89.82 a barrel, having dropped to $87.33 per barrel earlier, while U.S. crude futures CLc1 hovered at $82.30 and gold XAU= fell 0.6% to $1,649 an ounce.

"It's all a bit of a mess," said ANZ economist Finn Robinson.

($1 = 0.9252 pounds)



World FX rates YTD Link
Global asset performance Link
Asian stock markets Link
UK 30-year bond yields see record moves after BoE intervention
Link
Major currencies vs. the dollar Link



Reporting by Marc Jones; Editing by Andrew Heavens


免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示:您的資金存在風險。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明