Dollar keeps surging while European markets sink
|European markets are under heavy pressure again today, but in the US the dollar rally is still going strong, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 edges down but rest of Europe drops sharply
The rise in yields continues to pressure European stocks, but the FTSE 100’s losses pale in comparison to continental Europe. Here, the yield trade combines with political worries about the German election, plus deep concern that incoming president Trump will impose tariffs on European companies. The CAC40 is heading back to the lows of August but the Dax is losing ground rapidly too.
Dollar pushes to five-month high
Today’s CPI reading has supported the dollar and given it fresh impetus to move higher, while a drop to parity for the euro against the dollar is being openly talked about once more. Trump’s election has only increased the appeal of all things US, and while stocks have taken something of a breather this week, there seems no stopping the dollar.
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