Published: Tue, September 12, 2017
Markets | By Erika Turner

Risk appetite props up dollar after worst week in two months

Risk appetite props up dollar after worst week in two months

The stats had limited impact on risk appetite ahead of the European session however, with the U.S Dollar managing to find some much needed support and with Asian equities making solid gains, the Nikkei up 1.41% off the back of a weaker Yen, as the markets responded to the limited noise out of North Korea over the weekend, and in particular North Korea's decision to celebrate its Founding Day rather than mar it with another intercontinental ballistic missile test that would have undoubtedly raised tensions further. Equities across Asia look set for a mixed start. The United States and its allies had been preparing for another long-range missile launch in time for the 69th anniversary of North Korea's founding on Saturday.

The S&P 500 surged over 1 per cent to a record high close on Monday as tropical storm Irma caused less damage than expected in Florida, and after North Korea did not test-fire missiles over the weekend, which some had feared.

The U.N. Security Council is set to vote on Monday on a watered-down US -drafted resolution to impose new sanctions on North Korea over its latest nuclear test, diplomats said. The country proclaimed itself to be an "unbeatable atomic power" amid the festivities.

The most severe United Nations sanctions so far against North Korea, imposed just weeks ago, introduced a complete ban on coal and iron exports, blocked global sales of North Korean lead ore and seafood and imposed travel bans and asset freezes on individuals and companies.

The blue chip FTSE 100 index was up 0.6 percent at 7,413.59 points, while mid caps gained 0.4 percent.

In New York, Wall Street opened sharply higher.

Asian stock indices mixed
Dollar bounces from worst week in 2 months as risk-on mindset returns

Ireland's construction activity expanded at the weakest pace in almost two-and-a-half years in August, survey figures from IHS Markit showed Monday. Markets in China remain in focus after inflation accelerated in August, exceeding estimates. This was the fastest since January and exceeded the expected level of 1.6%.

Power was cut to more than one million people in Floria and cranes buckled in Miami as the Category 4 hurricane made land in the USA but financial markets had been bracing for an economy denting storm that could delay further interest rate hikes in the US.

STORMY WEATHER: Investors were waiting for damage assessments after Hurricane Irma battered Florida's coastline, knocking out power to millions and flooding the financial district in downtown Miami and toppling two construction cranes there.

Forecasters have warned the threat to life still remains, as Florida continues to be battered by 100 miles per hour winds and torrential rain. The hurricane has gradually lost strength, however, and has been downgraded to Category 1 as it continues to move its way across land.

In a slim economic calendar, Italian industrial output is due at 0900 BST. The update of most interest will be that from Primark owner Associated British Foods, which will be publishing its Q4 figures.

A host of biotech stocks were also higher after reporting positive news on their drug developments.

International Concern Grows Over Rohingya Exodus From Myanmar
The world seems to have failed to learn from its previous actions, as it is doing nothing to avoid such atrocities. Many who found their way to Myanmar in those days were veterans of recent tragedies in Rwanda and the Balkans.

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