Published: Sat, June 02, 2018
Markets | By Erika Turner

Dollar falls, euro recovers as Italian political tensions ease

Dollar falls, euro recovers as Italian political tensions ease

On the economic space, Euro Zone inflation surprised economists and analysts on Thursday, after Consumer price data (CPI) released on Thursday showed inflation jumped to 1.9 percent, well above the forecast of 1.6 percent.

Even the idea of Italy leaving the euro was enough to send the country's bond yields to multi-year highs on Tuesday. The S&P 500 index 1.2 per cent to 2,689.86.

The ECB could just hint at an extension to QE while taking another six weeks to see how the political situation in Italy and the trade conflict with the USA play out, and take in more economic data, said the economist.

ASIA'S DAY: Japan's Nikkei 225 fell 0.6 percent while South Korea's Kospi lost 0.9 percent. The Nasdaq composite fell 0.5 per cent to 7,396.59.

Stock markets turned higher on Friday after some losses in Asia as investors digested strong jobs data in the US, the risk of mounting trade tensions and an easing in Italy's political uncertainty.

However, on Wednesday, hopes were raised that an election could be avoided after Italy's premier-designate, Carlo Cottarelli, said "new possibilities" had emerged to form a government based on the outcome of the March 4 vote, and that he wanted to give the option time to mature given the negative market reaction to the prospect of new elections.

LeBron James Asked the Cavs Not to Trade Kyrie Irving
With James, those skyrocketed to +2 and +11.1, respectively. "He's going to go do some things today and see how he feels". While Love has been solid, Smith and Thompson haven't always come through this season for Cleveland.

Ratings agency Moody's warned that it would cut Italy's rating - now just two notches above junk level - if the next government doesn't present a budget that puts Italy on a trajectory to reduce its debt, now at 132 percent of GDP, the second highest rate in the eurozone after Greece.

Italy, one of the European Union's biggest economies, has been plunged into crisis after President Sergio Mattarella at the weekend vetoed the new government's nomination of a fierce eurosceptic as economy minister. The Russell 2000 index of smaller-company stocks slid 2 points, or 0.1 percent, to 1,624.

Concerns about a trade war hampered the dollar against the yen.

Eurostat said Thursday the jobless rate in the single currency area fell to 8.5 percent in April, a nine-year low and down from 8.6 percent a month before.

The Treasury official also said that G7 countries are likely to ask Mnuchin about pending USA steel and aluminium tariffs that could become effective as early as Friday as exemptions for Canada and the European Union expire. Oil prices have slumped in the last week following reports that OPEC countries and Russian Federation could start pumping more oil soon.

U.S. S&P500 mini futures rose 0.5 percent, but market holidays in the world's two biggest financial centers - London and NY - could make trading slow and illiquid for the day. Brent crude, used to price global oils, shed 38 cents to $75.11 a barrel in London.

Like this: