Dollar bullish investors stole the show during trading on Monday with the Dollar Index surging to 11-month highs at 100.00 as expectations intensified during the Federal Reserve raising U.S. interest rates in December.
Global stocks staged an awe-inspiring rebound during late trading on Wednesday as investors came to terms with the shocking Donald Trump presidential victory. Asian shares rallied in the early sessions of Thursday with the Nikkei lurching close to 7% as participants re-evaluated the global effects of Trump’s severely mispriced election win.
WTI Crude received a pummelling on Tuesday with prices sinking below $49.50 after reports displayed an inflated rise in U.S inventories which revived concerns over the excessive oversupply in the markets.
Currency markets were unnaturally calm during trading on Tuesday with major currency pairs lacking direction as anxious traders awaited the next big macro release. Stock markets meandered between losses and gains as the conflicting combination of rising oil prices and heightened expectations of a U.S. interest rate kept investors on edge.
Global stocks were resilient last week Friday with major arenas clawing back gains following the upbeat corporate earnings and stabilising oil prices which revived risk appetite. Asian shares floated into gains on Monday as the improving Japanese trade data propelled the Nikkei +0.29% higher. European markets have already commenced this week on a solid footing by borrowing Asia’s bullish momentum and this could influence Wall Street later today.
Stock markets were erratic on Thursday with most major arenas violently swinging between losses and gains as the messy combination of depressed oil prices, a resurgent U.S. Dollar and rising European Central Bank stimulus hopes kept investors on edge.