Thursday 22 August 2019

Dollar hits 14-year high as US stocks soar

Stock price information is displayed on screens as they hang above the Paris stock exchange
Stock price information is displayed on screens as they hang above the Paris stock exchange

Reuters

The dollar hit a 14-year high on Tuesday while the yen slid after the Bank of Japan stuck to its ultra-loose monetary policy. US stock indexes touched record highs as the rally in riskier assets since the US election looked set to continue.

On Wall Street, the Dow neared the 20,000 level as reassurance over Italy's plan to spend up to €20bn ($21bn) to rescue its troubled banks offset an aversion to risk following attacks in Turkey and Germany a day earlier.

"Investors have become so fast in digesting bad news, and this explains the resilience in financial markets," said Hussein Sayed, chief market strategist at FXTM.

US stocks have rallied since the November 8 election, with the S&P 500 rising nearly 6pc on bets that US President-elect Donald Trump's plans for deregulation and infrastructure spending will boost business.

Dublin's Iseq overall index of Irish shares was one of the only European exchanges in negative territory on Tuesday. The day's most significant loss was at Swiss/Irish food group Aryzta (-4.1pc). There were also losses for oil and gas stocks.

Confirmation of the sale of fruit giant Fyffes to the Japanese Sumitomo Corporation was also announced on Tuesday. Sumitomo will manage the new entity through an Irish-based subsidiary, Swordus Ireland, in a €751m deal.

Irish lender Permanent TSB was 3.4pc up at the end of the day, while there were also gains for financial firm IFG (2.2pc). The ISEQ closed at 6477.67,closing down 17.19 points, or 0.26pc.

Elsewhere in Europe, London's Ftse 100 was up by 0.26pc, the DAX in Germany rose 0.27pc, while the CAC rose by 0.44pc in Paris.

Irish Independent

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