The US currency found support after the Federal Reserve raised rates by 50 basis points (bps) this week. The market is pricing in a more than 90% chance of a 75bps hike in June, according to Refinitiv data.
US payroll data due later in the day will help traders gauge the strength of the economy. Economists polled by Reuters expect 391,000 new jobs to be created in April, up from 431,000 the previous month.
“The trend remains of a strong and very tight labor market, which is fueling wage increases and is a problem for long-term inflation,” said Gergely Majoros of asset manager Carmignac.
futures of wall street they fell a strong 0.29%, after the Dow Jones Industrial Average and S&P 500 lost more than 3% and the Nasdaq Composite fell 4.99%, in their biggest daily drop since June 2020.
European shares fell 1.14%, to their lowest level since mid-March and on track for their worst week in two months. Britain’s FTSE was down 0.73%.
The MSCI World Stock Index fell 0.35%, near its lowest since February 2021.
The dollar index hit a 20-year high at 104.06 before paring gains. Against its Japanese pair it appreciated 0.17% to 130.34 yen, also close to its highest level in 20 years, although the euro gained 0.45% to 1.0584 dollars.
US Treasury bond yields also rose on expectations of a rapid pace of rate increases. The 10-year note yield was trading at 3.0828% after topping 3.1% overnight for the first time since November 2018.
MSCI’s broader index of Asia-Pacific shares excluding Japan fell 2.69%, hitting its lowest level since March 16. The measure is down 4% from last Friday, in what would be its worst week since mid-March.
Japan’s Nikkei rose 0.69% after returning from a three-day holiday. Leading Chinese stocks lost 2.53%, Hong Kong’s benchmark fell 3.89% and the yuan fell to an 18-month low.
Crude prices advanced close to $2, extending gains for a third consecutive session and shrugging off concerns about global economic growth as looming European Union sanctions on Russian oil raised the prospect of tighter supply. limited.
Gold was up 0.36% at $1,883.63 an ounce.
By Carolyn Cohn of Reuters news agency
Source: Ambito
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