LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » World News

Global markets: Euro at two-year high, Asian shares barely budge

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Updated: Fri, Jul 21, 2017
09:54 am
Reuters

The euro held near two-year highs against the dollar on Friday after the head of the European Central Bank said tapering of its stimulus will be on the table this autumn, while a solid global economic outlook kept Asian share prices near decade highs.

While ECB President Mario Draghi set no date for changes to the bond-buying plan, investors took his comments on Thursday as confirming their expectations that the discussions would lead to monetary tightening next year.

"Although bond markets didn`t take his comments as something particularly new, the currency market liked the fact that Draghi confirmed his stance towards tapering," said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.

In early Asian trade, the euro stood at $1.1630, maintaining its 1 percent gain on Thursday, its biggest since June 27, when Draghi first sparked expectations that the ECB will dial back its bond buying scheme.

Signs of steady global growth, which have prompted the ECB and a couple of other major central banks to signal future tightening since last month, have kept the world`s shares on firm footing.

MSCI`s broadest index of Asia-Pacific shares outside Japan, which has gained about 5 percent in the past two weeks, eased 0.2 percent on Friday.

Japan`s Nikkei dropped 0.3 percent as the yen rose against the dollar.

MSCI`s gauge of stocks across the globe was little changed after rising for a 10th straight session on Thursday, its longest such streak since February 2015. It has advanced 3.1 percent in the latest rally.

"Strong global growth and decent earnings outlook are supporting shares globally," said Tatsushi Maeno, senior strategist at Okasan Asset Management.

U.S. quarterly earnings are expected to have climbed 8.6 percent, above the 8-percent rise projected at the start of the month, according to Thomson Reuters I/B/E/S. About 15 percent of S&P 500 companies having posted results so far.

Still, the major U.S. indexes were almost flat on Thursday, not helped by concerns about U.S. President Donald Trump`s inability to push his through healthcare reform bills, the passage of which will be needed to finance his tax cut plans.

The dollar was also dogged by similar concerns, with its index against a basket of major six currencies hitting its lowest level since August on Thursday.

Against the yen, the U.S. currency hit a three-week low of 111.48 yen on Thursday even after the Bank of Japan Governor Haruhiko Kuroda dropped no hint of following other central banks in curtailing many years of stimulus. It last stood at 111.87 yen.

While the euro gained sharply on Draghi`s comments, global bond markets reacted more calmly, partly as he did not give a clear signal on when the ECB will announce its tapering.

The 10-year U.S. Treasuries yield dropped to 2.238 percent, its lowest in three weeks, on Thursday and last stood at 2.261 percent.

The 10-year German Bund yield also ended down at 0.531 percent, from close of 0.543 percent the day before.

"I think it is unlikely that Draghi will announce tapering in September. Before the ECB reduced its bond purchase in April, Draghi had asked his staff to look into options in September, and three months later in December he made an announcement," said Hideki Kishida, a senior economist at Nomura Securities.

"This time he hasn`t even tasked his staff to prepare options," he added.

In commodities, oil prices were little changed after choppy trading the previous day, as nagging worries about abundant global crude supplies sank prices after an early rally had boosted Brent above $50 per barrel for the first time since June 7.

Traders predicted prices would hold near current levels ahead of Monday`s meeting between key OPEC and non-OPEC producers in St. Petersburg, Russia.

Brent crude futures traded at $49.26 per barrel, down 0.1 percent on day.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

Citi on Mutual Funds: UTI AMC is top pick; sector may deliver Healthy (15%) AUM / profit growth likely

Google Play Store removes 453 digital personal loan apps in India since Dec 28 in crackdown against unfair online lending | #OperationHaftaVasooli

PUBG Mobile India launch date: Rumours rage with this announcement; will the Battle Royale Game make comeback? Check latest report

Covid-19 Vaccination Good News! India to vaccinate itself back to normal, says Barclays

SSC CHSL 2019 Tier I result likely today on ssc.nic.in | Here’s how you can check it

Ind vs Aus: Unruly group of fans call Siraj, Sundar ''grubs''

After 157 attempts and Rs 3lakh, this man FINALLY clears driver’s learner test

HDFC Securities highlights that 14563-14256 is the resistance/support for the Nifty in the near term

Very important Aadhaar Card Update! Do your Aadhaar-mobile linking by this date or miss a big opportunity

ICICI Bank credit card, debit card holders delight! Get discount up to 50% on essential and luxury items | check details

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved