• MTS Economic News_20160725

    25 Jul 2016 | Economic News

 
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The dollar was buoyant against the euro and yen early on Monday as a prevailing risk-on mood continued to support the U.S. currency and assets.

Upbeat U.S. business activity data out on Friday also added to prospects of a near-term Federal Reserve interest rate hike and supported the greenback.

The euro was down 0.1 percent at $1.0969 EUR= after slipping to a one-month low of $1.0955 on Friday in the wake of shootings that took place on Friday in Munich. Against the safe-haven yen the dollar was up0.1 percent at 106.30 JPY=, having recovered from a dip below the 106 threshold after Wall Street shares resumed their advance.

While the BOJ has effectively dashed hopes that it would adopt unorthodox "helicopter money" stimulus methods, the market has still maintained its expectations that the central bank would ease in one form or the other.


A communique issued by the G20 ministers at the end of the two-day meeting said Brexit, which dominated discussions, had added to uncertainty in the global economy where growth was "weaker than desirable". It added that members, however, were "well positioned to proactively address the potential economic and financial consequences".

"In light of recent developments, we reiterate our determination to use all policy tools – monetary, fiscal and structural – individually and collectively to achieve our goal of strong, sustainable, balanced and inclusive growth."

The International Monetary Fund this week cut its global growth forecasts because of the Brexit vote.


A German-Iranian teenager who shot dead nine people in Munich was a deranged lone gunman obsessed with mass killings who drew no inspiration from Islamist militancy, police said on Saturday.

The 18-year-old, born and raised locally, opened fire near a busy shopping mall on Friday evening, triggering a lockdown in the Bavarian state capital.

Seven of his victims were themselves teenagers, who police said he may have lured to their deaths via a hacked Facebook account on what was the fifth anniversary of twin attacks by Norwegian mass murderer Anders Breivik that killed 77 people.

The Munich shooting, in which a further 27 people were wounded, some seriously, was the third act of violence against civilians in Western Europe - and the second in southern Germany - in eight days.

Earlier on Sunday, a 21-year-old Syrian refugee was arrested after killing a pregnant woman in a machete attack that killed one woman in Reutlingen, near Stuttgart.

That attack came after a refugee from Pakistan wielding an axe injured five people near Wuerzbuerg, also in southern Germany, before he was shot dead by police on July 18.


Crude prices inched down on Monday in Asia, staying not far from two-month lows hit in the previous session, amid worries over a global oil glut.

A strong dollar and the fourth weekly rise in the U.S. oil rig count have helped relieve pressure on crude futures.

London Brent crude for September delivery was down 4 cents at $45.65 a barrel by 2243 GMT on Sunday, after settling down 51 cents on Friday. The benchmark contract on Friday hit $45.17, the lowest since May 11.


Reference: Reuters


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