By Herbert Lash
| NEW YORK
NEW YORK The dollar hit an 11-week high Tuesday on growing expectations U.S. interest rates will rise in December, while crude prices retreated on concerns a proposed cut by the world's largest oil exporters might not be enough to reduce a global supply glut.Stocks on Wall Street opened lower and European shares retreated, as crude oil fell and pulled the UK benchmark FTSE 100 equity index down after it set a record intraday high that was helped by more further sterling weakness.The British pound has lost more than 4 percent of its value against the dollar over the past week as investors fret about the impact of a "hard exit" by Britain from the European Union.In the United States, investors are looking to Wednesday's release of the minutes from the Fed's policy-setting meeting in September for signs of a December rate hike. The futures market has attached a roughly 70 percent probability that the Fed will lift rates in December, which pushed the benchmark 10-year U.S. Treasury yield to a more than four-month high."Recent data on jobs, manufacturing and services growth have shown compelling strength that could green light a U.S. rate hike by the end of the year," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
The dollar index, which measures the greenback against six major currencies, jumped 0.64 percent to 97.545, after hitting 97.595 - its highest since late July.The euro fell to more than a two-month low against the dollar, and was last down 0.68 percent at $1.1061. Against the yen, the dollar was basically flat at 103.54, but has gained more than 2 percent so far this month.
Crude oil prices slipped, retreating from one-year highs after mixed responses by Russian oil industry officials toward a call from the Organization of the Petroleum Exporting Countries for all major crude producers to cut output.The International Energy Agency, the energy watchdog of the West, said it was unclear how rapidly global oil supply could fall in line with demand even if Russia and OPEC agreed on a steep enough cut.Brent crude oil was down 40 cents at $52.74 a barrel and U.S. West Texas Intermediate crude slipped 38 cents to $50.98.
The Dow Jones industrial average fell 153.37 points, or 0.84 percent, to 18,175.67. The S&P 500 slid 20.83 points, or 0.96 percent, to 2,142.83 and the Nasdaq Composite lost 56.43 points, or 1.06 percent, to 5,272.24.In Europe, the pan-regional FTSEurofirst 300 index fell 0.45 percent to 1,344.16. MSCI's all-country stock index fell 0.94 percent.U.S. Treasury yields rose with benchmark 10-year notes hitting their highest since June 3 as risk appetite returned to markets. The 10-year U.S. Treasury note fell 6/32 in price to yield 1.7568 percent. (Reporting by Herbert Lash; Editing by Nick Zieminski)
This story has not been edited by Firstpost staff and is generated by auto-feed.
First Published On : Oct 12, 2016 00:00 IST