The euro hasn’t seen such buying muscle since January 2015: at 4pm UK time the euroland currency was buying $1.2016, up +0.34% on the day and a +2.16% climb on the week. However the bigger achievement is the yearly climb – up by close to +15%.
The dollar retreat is largely on the lack of US commitment from Fed boss Janet Yellen to move interest rates higher as well flight-to-safety worry on yet more North Korea-Asian tension.
A ballsier euro had an immediate effect on the German Dax, plunging almost -1.50% while the French CAC 40 was down -0.83% at 4pm or so. European shares haven’t been this low for six months as export strength is drained by the surging common currency.
Sterling was up only +0.12% in comparison at $1.2946 not helped by a ticking off from EU president Jean-Claude Juncker – Britain’s Brexit negotiations are some distance from “satisfactory” said Juncker with little detail yet on the final ‘divorce’ bill a particular itch.
Oil worries from BP and Shell lead the FTSE 100 down, sinking more than -1%. at one point. However at market close the FTSE 100 was down 64 points at 7,337.43 with Randgold and Fresnillo the top risers, up +4.56% and +2.59%. ITV and Morrisons saw -4.91% and -3.70% falls. There is still some uncertainty for Morrisons on the future of its Amazon wholesale deal to sell fresh food.
- UK FTSE 100 7,337.43 -0.87%
- Dow 21,796.87 -0.05%
- S&P 500 2,440.20 -0.17%
- Nasdaq 6,279.45 -0.05%
- Nikkei 225 19,362.55 -0.45%
- DAX 11,931.31 -1.59%
- CAC 40 5,028.90 -1.00%
- Gold 1,325.00 +0.74%
- Oil WTI 46.09 -1.03%
Hurricane Harvey costs – lower than Katrina
Damage costs from Hurricane Harvey are starting to emerge thought it’s thought they may not hit the $120bn mark that Hurricane Katrina cost. The most exposed so far are home owners.
"All these people taken out in boats, they have a second problem: They have no insurance," Robert Hunter from the Consumer Federation of America told the The Telegraph. Some of those affected will have had wind damage insurance, but not flood water.
Many vehicles will be similarly affected by a lack of comprehensive insurance cover.
On the oil front Harvey has forced the close-down of several oil terminals and ports; there is even talk of Europe muscling in to help oil supplies to Latin America. Meanwhile many US drivers will have felt the pain at the pump, especially in the south.
Whether the driving winds of up to 130mph and torrential floods will affect Donald Trump’s view of climate-change driven storms is another issue – almost certainly no.
BrewDog pledges 20% profits to charity
Lastly BrewDog, the Aberdeenshire craft brewer says it will donate 20% of all its profits to charity each year. The Scottish business was valued at £1bn this year. It has a substantial investment stake from private equity player TSG Partners.
“This is a call to arms for businesses to democratise the impact their charitable contributions can have on their community, their people, and the world,” said co-founder James Watt, quoted in the Telegraph.
Breaking news: United Technologies may be close to buying aerospace tech player Rockwell Collins, reports US media. Burger King has created its own currency in Russia – WhopperCoin. IoS and Android apps will be deployed to utiliise the fast food 'currency' shortly.