The dollar rises on upbeat housing data and an upcoming Yellen speech, oil prices tumble, global stocks are mixed, the EM falls. Here are four things to know in the market today, August 24.
1. The Dollar Rises
The dollar moved higher against a basket of major currencies as investors await Fed Chair Janet Yellen’s speech at the Jackson Hole symposium later this week. Hawkish remarks from other Fed officials helped lift the dollar last week. Yellen’s speech may provide further insight into the timing of the next rate hike.
Upbeat housing data also supported the dollar. A new report on Tuesday showed that sales of new single-family homes rose unexpectedly last month.
2. Oil Prices Tumble
Oil was sharply lower on Wednesday after a report from the American Petroleum Institute showed an unexpected surge in crude stockpiles.
API announced that inventories in the U.S. were up by 4.46 million barrels last week. Analysts were expecting a decline of 500,000.
Crude futures in the U.S. were down 1.62% to $47.32. Brent was trading 1.02% lower at $49.45.
Later today, the U.S. Energy Information Administration will release its data on oil supplies.
3. Global Stocks Are Mixed
European stocks opened lower, but moved higher mid-day. The FTSE 100 was still in the red, but the Euro Stoxx 50 was up 0.5%.
Asian stocks were broadly lower as investors turned their focus to Yellen’s speech. A weaker yen helped Japan avoid losses.
In the U.S., futures were flat. In early morning, Dow futures were up 5 points, NASDAQ 100 futures were up 4 points and S&P 500 futures climbed 2 points.
4. Emerging Markets Fall
The Borsa Istanbul 100 Index, Turkey’s benchmark, slid 2.9% during morning trade as the country went on the offensive against the Islamic State.
South Africa’s Finance Minister received a summons for questioning by the country’s elite police unit. South Africa’s central bank said the country had “too much inflation,” which prevents it from lower rates.