The horror of attacks in Paris and Mali

Stronger dollar boosts Asian shares but hits commodities

GMT 07:17 2015 Monday ,23 November

Arab Today, arab today Stronger dollar boosts Asian shares but hits commodities

The euro slid for a second day after European Central Bank chief Mario Draghi
Hong Kong - Arab Today

Growing confidence the US will raise interest rates next month boosted stocks in Asia on Monday and helped the dollar cement gains, but piled pressure on commodities prices and hurt mining and energy companies.

Wall Street capped its best week all year on Friday, shaking off the horror of attacks in Paris and Mali on expectations the Federal Reserve is confident enough in the world's top economy to raise interest rates next month.

The prospect of the first rise in US rates in almost a decade boosted the greenback, but dragged down raw materials and energy prices as the stronger dollar made them more expensive for international investors.

Oil prices dipped, with US benchmark prices trading around $41 a barrel, while copper lingered near its lowest point since 2009 and gold slipped for its second day in a row.
San Francisco Fed president John Williams fuelled expectations of a rate rise this weekend when he said there was a "strong case" for a hike in December, following bullish remarks from his colleague from St Louis on Friday.

The comments "were consistent with market expectations that the ECB will ramp up its stimulus efforts and the Fed will deliver its first interest-rate hike in close to a decade next month," Philip Borkin, a senior economist for ANZ Bank in Auckland, said in comments reported by Bloomberg News.

The euro, meanwhile, slid for a second day after European Central Bank chief Mario Draghi on Friday hinted the lender could unleash further stimulus to boost stubbornly low inflation in the eurozone.

His pledge to "do what we must" to lift prices fuelled expectations the bank could expand its already vast easing scheme after the Paris attacks 10 days ago hit investor confidence in the region.
Shares in Sydney, South Korea, Shanghai and across the Asia rose in early deals on Monday. Tokyo's share market was closed for a public holiday.

But material shares were hurt by the slide in commodities, with global miner BHP Billiton dropping 2.4 percent in Sydney and Chinese energy giant Sinopec losing 1.4 percent in Hong Kong.

Hong Kong's benchmark index also went against the grain, dipping in early trade, led by a slump in major Chinese brokerage Guotai Junan after the company said its chairman and CEO Yim Fung could not be found.

The company's shares fell by as much as 15 percent on Monday morning, the day after the southern Chinese city held its first elections since huge pro-democracy protests last year.

Key figures around 0245 GMT

Tokyo - Nikkei 225: CLOSED

Hong Kong: DOWN 0.2 percent at 22,704.27

Sydney: UP 0.4 percent at 5,276.10

Euro/dollar: DOWN to $1.0604 from $1.0713 in New York

Dollar/yen: UP to 123.26 yen from 123.02 yen

New York - Dow: UP 0.51 percent at 17,823.81 (close)

New York - S&P 500: UP 0.38 percent at 2,089.17 (close)

New York - Nasdaq: UP 0.62 percent at 5,104.92 (close)

-- Bloomberg News contributed to this report --
Source: AFP

Arab Today, arab today
Arab Today, arab today
arabtoday arabtoday arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabs, Arab, Arab