November 12, 2021

Dollar Remains Rising Momentum, Stock Market Bounces Due to US Inflation Factors

 The US dollar continued its upward momentum after US inflation readings remained strong for more than 3 decades while equity markets rebounded on expectations high consumer prices would help corporate growth.

The dollar index, which measures the U.S. dollar, climbed to its highest level after its biggest daily jump since March following a rise in higher -than -expected U.S. consumer price data.

The CPI index recorded its biggest monthly gain in its 4 -month period with an annual inflation rate increase of 6.2%.

The euro fell $ 1.15 to $ 1.12, however European stocks saw higher movements due to the potential for increased competitiveness.

The world MSCI index rose 0.07% following gains on the Wall Street market while the European STOXX 600 index jumped 0.32% during the closing session.

The Dow Jones Industrial Average was down 0.44% while the S&P 500 was up 0.06% and the Nasdaq Composite was up 0.52% at the close.

Meanwhile, Chinese and Japanese stocks also rose.

The Chinese market soared as real estate giant Evergrande managed to avoid a ‘default’ status after successfully paying off their bond coupons while Japan’s Nikkei rose a deck helped by the weakness of the Yen currency as well as exports.

China's blue chip stocks rose 1.6% as Evergrande posted a gain of 7%. Japan’s Nikkei was up 0.6% while the Yen weakened to 114.15 per dollar from its strongest value of 112.73 earlier this week.

Tesla shares fell 0.4% after CEO Elon Musk sold about $ 5 billion a few days ago having seen Tesla shares plummet 13% overall this week.

Meanwhile, Walt Disney shares fell 7.1% ahead of declines among Dow and S&P 500 components as Disney+ subscription reports posted weak gains.

Gold jumped to a 5 -month high of $ 1,868.20 overnight before declining on Thursday and U.S. gold futures in December are expected to be 0.8% higher at $ 1,863.90 an ounce.

Oil prices rose $ 83 a barrel before falling slightly as markets struggled with a strengthening dollar and concerns about U.S. inflation.

Brent crude oil prices rose 23 cents at $ 82.87 a barrel and U.S. crude oil prices rose 25 cents at $ 81.59 a barrel.

Bitcoin hit a new record at $ 69,000 before falling 0.19% at $ 65,046.30.