Forex
US Federal Reserve meeting minutes showed the central bank are ready to press on with higher interest rates despite underwhelming inflation. The dollar made gains against most major currencies thanks to the hawkish Fed, apart from the Japanese yen, which climbed 0.2% against the dollar amid rising tensions from North Korea.
Meanwhile, the euro shed 0.1% off its value and the Aussie dollar remained flat. The European Central Bank will release its meeting minutes later today, which could give the euro a fresh bout of bullish bets.
Commodities
Oil prices declined, igniting a sell-off in energy stocks. Oil’s direction may change later today, once crude oil inventories are released.
Gold dipped lower thanks to the rising dollar, down at $1224 per bullion.
Equities
European shares declined along with Japanese shares. Emerging market indices in India and Indonesia shot up.
Geopolitical risks are weighing on investors since North Korean leader Kim Jong Un’s successful test of an intercontinental ballistic missile. US equities are set to fall once trading in New York gets underway, according to futures. The prospect of this has sent European markets lower. The DAX 30, seen as the proxy for European sentiment has shed 0.2% off its value.
However, investors are shrugging off their anxieties, for the most part, as the measure of risk in the S&P 500 remains at record low levels.