The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
US stocks were higher on Tuesday with technology shares shaking off Monday’s slide. The euro extended its decline in the wake of the German election, lending support to a dollar rally as investors digest a raft of catalysts from North Korea to central-bank policy.
The Nasdaq 100 Index climbed at the open, taking back some of Monday’s 1.1 percent decline. Emerging-market stocks headed for only their second four-day retreat this year, while equities in Europe were directionless as America continued to pursue a diplomatic solution to the crisis in North Korea.
The euro fell to a five-week low following the steepest drop of the year, while the dollar hit its highest level since August. The Swiss franc and the yen pared of the previous day’s some gains, which followed North Korea’s declaration it could shoot down US warplanes. WTI crude declined, though was still close to a five-month high after Turkey threatened to shut down Kurdish crude shipments.
Markets seem to have been oscillating between risk-on and risk-off stances since early August as tensions simmer on the Korean Peninsula. Equities have edged away from recent record highs as the US and North Korea trade threats, and now an assortment of global political risks look set to further cloud the outlook, not least the worry that gains for far-right parties in Germany’s vote signal a new populist bent in Europe. Italy is dues to go to the polls next year.
The yield on 10-year Treasuries was unchanged at 2.22 percent. Japan’s Topix index closed flat after trading in a narrow range. South Korea’s Kospi index fell 0.3 percent and Australia’s S&P/ASX 200 Index lost 0.2 percent. Hong Kong’s Hang Seng Index added less than 0.1 percent after slumping 1.4 percent.