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'King dollar' benefits from European risks, growth fears

Ersin Çelik
13:17 - 12/11/2018 Monday
Update: 13:31 - 12/11/2018 Monday
REUTERS
People walk past the entrance of the London Stock Exchange in London, Britain.
People walk past the entrance of the London Stock Exchange in London, Britain.

U.S. shares were set to open flat during a session likely to be thinned by the Veterans Day holiday, with Treasury bond markets shuttered. Futures for the S&P500, Dow Jones and Nasdaq were flat to slightly firmer after sharp falls on Friday.

The other big move was in commodities, where Saudi Arabia's energy minister took some pressure off last week's oil price drop, saying on Sunday that Riyadh could reduce supply to world markets by 500,000 barrels per day in December, a global reduction of about 0.5 percent.

That jolted Brent crude futures more than 2.07 percent to a high of $71.88 per barrel. However, the supply cut may prove to be a temporary solution to falling prices as global growth slows, with two of the world's biggest economies - Germany and Japan - expected to report a contraction in output in coming days.

"Supply-side surprises appear to be the main culprit, but concern that global demand is slowing may also be creeping into markets and weighing on risk appetite," the ANZ analysts said.

#dollar
#European
#Britain
#Italy
#investors
6 years ago