The dollar climbs higher, Apple gets slapped with a billion-dollar tax bill, markets are higher, and oil discoveries are lackluster. Here are four things to know in the market today, August 30.
1. The Dollar Rises
The U.S. dollar advanced against a basket of currencies on Tuesday on renewed hopes of a rate hike before the end of the year. Fed Chair Janet Yellen hinted at a potential rate hike as early as September, although Morgan Stanley (MS) says the possibility is moot.
The timing of the next rate increase, according to Yellen, will be dependent on new economic data.
2. Apple Gets Hit with Hefty Tax Bill in Europe
A ruling from the European Commission will require Apple Inc. (AAPL) to pay up to $14.5 billion in taxes, which will be paid to Ireland with interest.
Shares for Apple were down 2% in premarket trade on the news.
3. Global Markets Rise
Markets across the globe were broadly higher on Tuesday. In Europe, the Stoxx 600 Index was up 0.5%, while the U.K.’s FTSE 100 Index climbed 0.1% higher.
The MSCI Asia Pacific Index was 0.2% higher. The Hang Seng Index in Hong Kong led the way, with gains of over 5%.
S&P 500 futures were flat.
4. Oil Discoveries at a 70-Year Low
Oil explorers found only about one-tenth of the average annual level in 2015, and are set to find even less this year. Last year, explorers found just 2.7 billion barrels, the lowest amount since 1947, according to Wood Mackenzie Ltd, a consulting firm.
In 2016, explorers have only found 736 million barrels as of the end of July.
The lack of discovery has sparked concern on future demand, which is expected to grow to 105.3 million barrels per day by 2026.
Experts say low exploration data will hinder production and may potentially push oil prices much higher.
