The safe-haven dollar found support just below last week’s peaks on Monday as renewed concerns about China’s property sector and looming U.S. labour data put investors in a cautious mood.
The greenback scaled a 14-month high on the euro and a 19-month top on the yen last week as markets reckoned U.S. interest rates could rise ahead of global peers.
The euro dipped back below $1.16 and at $1.1598 is not far from last week’s trough at $1.1563. The yen was little changed at 111.065 per dollar. The offshore yuan fell about 0.3%.
Shares in embattled developer China Evergrande were halted in Hong Kong, rekindling market nerves about the possibility of contagion.
Evergrande said it requested a trading halt pending an announcement about a major transaction, while unit Evergrande Property Services Group said the announcement constitutes “a possible general offer for shares of the company.”
Investors are concerned that a collapse at Evergrande could hurt an already fragile Chinese economy and drag on global growth. The U.S. dollar index edged up 0.08% to 94.029.
Demand for Tesla (NASDAQ:TSLA) Inc’s mid-sized models helped push up electric car sales in Norway to nearly 80% of total car sales last month, data showed on Friday.
The country has been a global leader in switching to electric vehicles and seeks to become the first to end the sale of petrol and diesel engines by 2025.
Battery electric vehicles made up 77.5% of all new cars in September, the Norwegian Road Federation (OFV) said, up from 61.5% a year ago.
Tesla Model Y, a compact sports utility vehicle, was the top selling vehicle with 19.8% of the car market followed by the company’s Model 3 sedan with 12.3%. Skoda’s Enyaq was a distant third at 4.4%.
First unveiled by California-based Tesla in March 2019, the Model Y was only recently made available to European customers.
By exempting fully electric vehicles from taxes imposed on those relying on fossil fuels, oil-producing Norway has become a leader in ending the use of combustion engines, and in 2020 EVs outsold all other cars for the first time.
However, Norway’s zero-tax policy could change if the centre-left winners of last month’s national election go ahead with plans to tax the most expensive models.
Oil was down Monday morning in Asia, with the Organization of the Petroleum Exporting Countries and allies (OPEC+) due to meet for its supply policy meeting where it could decide whether a recent rally in prices is viable.
Brent oil futures were down 0.28% to $79.06 by 10:50 PM ET (2:50 AM GMT) and WTI futures were down 0.32% to $75.64. Brent futures hit an almost three-year high above the $80 mark last week as a global energy crunch and recovering fuel demand gave the black liquid a boost.
With OPEC+ due to meet later in the day, risk appetite has been “boosted by growing confidence in a strong pick up in global growth… as investors are focused on the upcoming OPEC+ meeting,” ANZ Research analysts said in a note.
Several countries are pressuring the cartel to increase production and lower prices as fuel demand continues to recover. OPEC+ in July 2021 agreed to boost output by 400,000 barrels per day every month until at least April 2022, in order to phase out 5.8 million bpd of existing cuts.
Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services