Market and product

The dollar advanced after an upbeat assessment on the U.S. economy from Federal Reserve Chairman Jerome Powell, helping spur declines across commodities and emerging-market currencies. Stocks in Europe climbed and S&P 500 futures were little changed.

The greenback outperformed its major peers, with a basket of developing-nation currencies dropping the most in two weeks, as China’s yuan touched the weakest level in almost a year and the South Korean won the worst in almost nine months. The pound tumbled after U.K. inflation came in below expectations. The Bloomberg Commodity Index was further weighed by oil tumbling through technical support on rising inventories. Treasuries and European bonds struggled for direction.

Shares in Europe climbed after a mixed session in Asia, as carmakers were boosted by the prospect of negotiations to reduce tariffs and technology shares were spurred by an apparent turnaround at Ericsson AB and forecast of greater profitability at chipmaker ASML Holding NV. Futures on the Dow and S&P 500 held steady. Alphabet Inc. fell in pre-market trading as its Google company was said to face a $5 billion fine, with the Nasdaq set to open down.

Powell had a little something for everyone on Tuesday, seemingly cementing the rate hike path while preserving his options by saying gradual tightening would continue “for now.” The Fed chairman offered few surprises, which allowed markets to focus on earnings; IBM and Morgan Stanley are among names due to report today.

Elsewhere, Bitcoin extended its biggest three-day rally since February, earlier breaking above $7,500 for the first time since June.

- Source: Bloomberg -