Published: Sat, January 13, 2018
Money | By Armando Alvarado

USA stocks end at records as euro gains on dollar

USA stocks end at records as euro gains on dollar

The greenback extended losses after data showed US producer prices fell for the first time in almost 1-1/2 years in December amid declining costs for services. In the meantime, the Platinum Group Metals continued to move in opposite directions. The minutes specifically refer to "early 2018".

The pairing opened daily trading in the region of 1.1930 and closed higher around 1.1956 in the evening.

EURO FLIES: The combination of developments in Germany and at the European Central Bank has sent the euro currency flying.

"Flows are the dominant driver of exchange rates now and have deteriorated for the Pound", says Harvey.

Germany's 10-year bond yield hit its highest level since an October European Central Bank meeting, when policymakers first announced the extension of its bond-buying scheme. "Trends in the euro zone economy have improved significantly over the last year or so as evidenced by strongly above-trend growth rates and a notable decline in the unemployment rate, with figures this week showing the jobless rate at a near nine-year low", according to Simon Barry, chief economist at Ulster Bank in Dublin.

Underlying U.S. consumer prices posted their biggest gain in 11 months in December, bolstering expectations about a pickup in domestic inflation and about Federal Reserve interest rate hikes this year.

Investors were once again provided a strong lead from Wall Street where all three main indices advanced to new all-time highs, with energy firms riding a surge in oil prices. The index is used as a measure of wholesale price inflation. The Australian dollar rose to $0.7891, from $0.7842, but shied away from stiff chart resistance at $0.7900. The greenback was primarily weighed down by the stronger euro.

Russian Man Steals Tank, Crashes Into Shop To Get More Wine
Here, he chose to jump out of the vehicle and into the shop to steal a bottle of wine, the local online Hibinform .ru reports. Reuters notes that witnesses at the scene "did not seem particularly disturbed by the incident".

A robust US inflation report boosted Treasury yields.

"If the reports turn out to be true and China no longer sees Treasurys as an attractive option, the repercussions could be significant as the country is one of the biggest holders of USA debt".

Benchmark 10-year notes gained 6/32 in price to yield 2.53 percent, after rising as high as 2.597 on Wednesday, the highest since March 15. The U.S. dollar was already weaker from the previous day, as news about BoJ's tapering on the long-term bond yields had sapped the strength out of the U.S. dollar, which was showing signs of recovery. Regulators are concerned that speculation is becoming rampant and threatening the stability of exchanges and financial institutions.

Crude oil prices are in a corrective mode today, with front-month WTI futures down 0.6% at $63.41, extending the retreat from yesterday's 37-month high at $64.75.

The switch in focus to the timing of an European Central Bank rate rise also means inflation data could have a greater impact on markets than in recent years, analysts said.

U.S. West Texas Intermediate (WTI) crude futures settled at $63.80 a barrel, up 23 cents, the highest since December 2014.

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