RTL Today – Stock market: Dollar extends 2022 surge as market awaits key US inflation figures

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The dollar extended its 2022 banner run on Monday, pushing higher after the latest strong U.S. jobs data as stocks retreated in New York and Europe.

The U.S. currency, which has already hit multi-year highs against the euro and other major currencies, rose as investors bet the latest round of U.S. jobs data released on Friday will confirm a plan to the Federal Reserve aiming to continue aggressively raising interest rates.

This week’s calendar includes the latest data from the US Consumer Price Index, which will give an updated reading of inflation which has prompted a 180 degree turn from the Fed’s easy money policies to a series of significant increases in interest rates.

“Inflation remaining stubbornly high would threaten to upset the market’s apple basket and support the dollar,” said a note from Convera’s Joe Manimbo.

Analysts said the greenback’s Monday gains also reflected the worsening Russian-Ukrainian conflict, which has bolstered the dollar’s position as a “safe haven” investment.

US stocks ended a choppy session lower, joining European stocks in decline.

This week’s calendar also includes September retail sales, as well as earnings from Delta Air Lines, JPMorgan and others.

Investors are cautious ahead of earnings season as rising costs are expected to squeeze corporate earnings.

Analysts now expect S&P 500 companies to see earnings rise 2.9% per share, down from the 10.5% expected in June, according to CFRA Research.

“We’re seeing some mild risk aversion in the markets at the start of the week, perhaps some apprehension ahead of what could be a few big days for the US,” market analyst Craig Erlam at OANDA said.

Elsewhere, the pound received little support from Britain, stepping up efforts to calm markets after a heavily criticized budget.

In what was seen as a coordinated action, the government brought forward the release date of key economic forecasts and the Bank of England increased liquidity.

“With the pound remaining weak and (UK) government borrowing costs rising to worrying levels, the UK government and the Bank of England have launched a two-pronged attempt to calm markets,” noted analyst Susannah Streeter. Senior Investments and Markets at Hargreaves Lansdown.

Oil prices meanwhile tumbled after the biggest weekly gain since March that followed last week’s decision by OPEC and Russian-led allied producers to cut crude output by two million barrels a year. day.

Monday’s drop is also due to demand issues caused by Covid surges in China and weaker data from Beijing due to lockdowns.

– Key figures around 2030 GMT –

New York – Dow: DOWN 0.3% to 29,202.88 (closing)

New York – S&P 500: 0.8% down to 3,612.39 (close)

New York – Nasdaq: 1.0% drop to 10,542.10 (closing)

London – FTSE 100: 0.5% decline at 6,959.31 (close)

Frankfurt – DAX: APARTMENT at 12,272.94 (closing)

Paris – CAC 40: DOWN 0.5% to 5,840.55 (closing)

EURO STOXX 50: DOWN 0.6% to 3,356.88 (closing)

Hong Kong – Hang Seng Index: DOWN 3.0% to 17,216.66 (closing)

Shanghai – Composite: DOWN 1.7% to 2,974.15 (close)

Tokyo – Nikkei 225: Closed for holidays

Pound/dollar: DOWN to $1.1059 from $1.1086 on Friday

Euro/dollar: DOWN at $0.9708 against $0.9745

Euro/pound: DOWN to 87.76 pence vs. 87.90 pence

Dollar/yen: UP to 145.72 yen from 145.25 yen

West Texas Intermediate: 1.6% drop to $91.13 a barrel

North Sea Brent: 1.8% drop to $96.19 a barrel

burs-jmb/bfm

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