Euro spurs higher against Dollar
By late morning both the Dow and S&P 500 had dipped into negative territory
LONDON (AFP) - The euro shot higher to strike a six-month dollar high on Tuesday as the single European currency benefited rising concerns across the Atlantic, while the FTSE struck new records.
The euro extended gains to break above $1.10 -- reaching a six-month high -- as the dollar wobbled following a series of below-par results out of the US, including on inflation.
"The euro is strengthening as political concerns in Europe ease, while the dollar is being sold" after the weak economic data, Marito Ueda, a senior dealer at FX Prime, told AFP.
The European single currency hit $1.1089 on Tuesday -- the highest point since November 9.
Meanwhile, updated data confirmed that the eurozone economy grew by 0.5 percent at the start of the year, after growing 1.7 percent last year.
Moreover, with the election of centrist Emmanuel Macron as president in France, concerns about the EU unravelling have dissipated, while the administration of US President Donald Trump has stumbled from one controversy to another.
"Since currencies are always a play on the relative strengths of two economies, the rising threat of political fallout in the US under Donald Trump is another boon for the euro," said market analyst Jasper Lawler at London Capital Group.
FTSE breaks 7,500
In equities action, London s benchmark FTSE 100 broke through the 7,500-points level for the first time to a new record high of 7,533.70 points. It finished the day with a gain of 0.9 percent at a record close of 7,522.03 points.
"Another day, another record high for the FTSE 100," said Kathleen Brooks from City Index.
Vodafone was the top performer, gaining nearly 4.0 percent, despite registering a 6.1-billion-euros ($6.9-billion) annual loss, as traders focused on the increased dividend and optimistic outlook for next year.
But eurozone equity markets fared less well. After striking a new record high of 12,841.66 points, Frankfurt s DAX 30 index the day down 0.02 percent. In Paris, the CAC 40 slid 0.2 percent.
US stocks opened higher, with the Dow up 0.2 percent to climb back over the 21,000-point mark, while the S&P 500 and the Nasdaq Composite both added to record closes.
But by late morning both the Dow and S&P 500 had dipped into negative territory.
In Asia, Tokyo s main shares index edged up 0.3 percent by the close, Hong Kong slipped 0.1 percent on profit-taking following a six-day rally, while Shanghai finished up 0.7 percent, marking a fourth straight day of gains.
Oil prices wobbled after making sharp gains on Monday after Russia and Saudi Arabia indicated they would seek to extend production cuts into next year.
On Tuesday the International Energy Agency said supply and demand in the oil market are close to matching up but warned rising US supply could mitigate the OPEC-led production cuts.
Key figures around 1530 GMT
London - FTSE 100: UP 0.9 percent at 7,522.03 points (close)
Frankfurt - DAX 30: DOWN 0.02 percent at 12,804.53 (close)
Paris - CAC 40: DOWN 0.2 percent at 5,406.10 (close)
EURO STOXX 50: FLAT at 3,641.36
New York - Dow: DOWN 0.03 percent at 20,975
Tokyo - Nikkei 225: UP 0.3 percent at 19,919.82 (close)
Hong Kong - Hang Seng: DOWN 0.1 percent at 25,335.94 (close)
Shanghai - Composite: UP 0.7 percent at 3,112.96 (close)
Euro/dollar: UP at $1.1068 from $1.0977 at 2100 GMT
Dollar/yen: DOWN at 113.07 yen from 113.75 yen
Pound/dollar: UP at $1.2911 from $1.2897
Oil - Brent North Sea: UP 10 cents at $51.92 per barrel
Oil - West Texas Intermediate: FLAT at $48.85
