Commodity News
HeadLine : Dollar firm as China Evergrande nerves resurface
Date : Oct 4 2021
The greenback scaled a 14-month high on the euro and a 19-month top on the yen last week as markets reckoned U.S. interest rates could rise ahead of global peers. Shares in embattled developer China Evergrande were halted in Hong Kong without any immediate reason, rekindling market nerves about the possibility of global contagion - or at least distress in China’s property sector. Investors are concerned that a collapse at Evergrande could hurt an already fragile Chinese economy and drag on global growth. Besides Evergrande a Friday CNBC report which said U.S. Trade Representative Katherine Tai will announce on Monday that China is not complying with U.S.-China trade rules also provided support to the dollar, especially against the yuan. Chinese markets were closed for a holiday. And on Friday, U.S. labour data is expected to show continued improvement in the job market, with a forecast for 460,000 jobs to have been added in September - enough to keep the Federal Reserve on course to begin tapering before year’s end.

Source: Reuters
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