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Shares and Euro rise on Ukrainian advance in Kharkiv province

The news of Ukrainian progress also helped the euro, which built on last week's gains following the ECB to reach its highest level versus the dollar in nearly four weeks. The possibility that the European Central Bank may need to increase its benchmark interest rate to 2% or more in order to combat record high inflation despite an impending recession also aided the single currency.

Feyisayo Ajayi September 12, 2022 2 min read

Futures for the S&P 500 and Nasdaq were up 0. 5% was added to Friday’s gain after mildly recovering from a two-year low struck last week, and MSCI’s broadest index of Asia-Pacific equities outside of Japan increased by 0.7%. The news of Ukrainian progress also helped the euro, which built on last week’s gains following the ECB to reach its highest level versus the dollar in nearly four weeks.

The possibility that the European Central Bank may need to increase its benchmark interest rate to 2% or more in order to combat record high inflation despite an impending recession also aided the single currency. The euro last increased 0.9% to $1.01385, having previously reached its highest level versus a weakening dollar since August 17.
Germany’s 10-year yield was last down 3. 5 basis points (bps) at 1. 667%. Italy’s 10-year government bond yield slipped back in line with European peers after earlier rising as much as 6.5 basis points to 4. 098%, its highest since mid-June.

The dollar index, which tracks the greenback against a basket of six major currencies, was down 0. 5% to 108.17, recovering slightly after earlier dropping to its lowest level since Aug. 26. Still, the index is up over 12% this year, having gained over 10% against the euro, 13% against the pound and 24% against the Japanese yen.
A soft number might revive speculation the Federal Reserve will only hike rates by 50 basis points this month, though it would likely have to be very weak to have a real impact given how stridently hawkish policymakers have been recent. The weaker dollar helped lift gold 0. 6% to $1,727 an ounce, away from last week’s low of $1,690.