3 Things to Know in Tuesday’s Market
The dollar tumbles to an 8-week low, global stocks fall and oil climbs to a five-week high. Here are three things to know in the market on Tuesday, August 16.
1. The U.S. Dollar Tumbles to 8-Week Low
The greenback slipped to its lowest level in eight weeks on Tuesday amid dampened expectations that the Federal Reserve will raise rates before the end of the year. Market players speculate that the central bank will leave rates unchanged at its next policy meeting.
The U.S. dollar index fell to 94.76, its lowest level since June 24.
Fed funds futures are pricing in a 9% chance of a rate increase by September. December’s odds dropped to 42% after a string of downbeat economic data pushed back expectations of a rate increase.
The dollar slid to 100.08 against the yen, while the euro gained on the greenback, reaching a high of 1.1277.
Investors have turned their focus to inflation data from the Commerce Department, which is expected later this morning.
2. Global Stocks Decline
U.K. and European stocks were slightly lower mid-morning. A boost in oil prices kept the decline in check.
In Asia, shares were mixed at closing. The Nikkei 225 lead the decliners due to a surge in the yen.
U.S. stock futures pointed to a lower opening after closing at an all-time high the previous day. Investors are focused on a new batch of economic data and earnings reports.
3. Oil Prices Climb to Five-Week High
Oil prices continued their gains on Tuesday, extending a three-day rally that has boosted prices by 10%. The gains come amid heightened expectations of a meeting between major OPEC producers to freeze output in order to boost the market.
U.S. crude gained 13 cents, up 0.68%, to $46.05 a barrel in early morning. Brent added 28 cents, up 0.58%, to $48.63 per barrel.
Oil prices have gained nearly 10% over the last three sessions.
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