Greenback bounceback; commodities, equities hit... Another lending crisis is brewing...
Greenback bounceback; commodities, equities hit
The US dollar is on the rise again, hitting commodities and equities. Oil prices are down 1.5 per cent on the stronger greenback but the dip has been softened by higher refinery demand. Baker Hughes rig count data is released at 1pm ET Friday.
Asian markets closed mostly lower with Australian resources producers under pressure from the rising US dollar. Japan’s government bond yields fell, although a lower yen helped exporters; the Nikkei closed lower. China and Taiwan are closed for a public holiday.
European indexes are lower too as investors seek safer havens with government bonds hitting record highs. The Eurozone is anxious ahead of the UK’s Brexit vote which is less than 2 weeks away.
Elsewhere, Russia’s central bank has cut its interest rate to 10.5 per cent from 11 per cent.
Wall Street and Toronto are expected to open lower.
Another lending crisis is brewing
Online lenders could face issues according to a Reuters report. It says that investors and lending company executives have flagged concerns that some online lenders’ automated systems have failed to detect multiple loans to borrowers.
The ‘soft’ credit checks made by automated systems mean that borrowers can often ‘stack’ loans without scrutiny of their financial circumstances, in order to use one loan to repay a previous one.
The US dollar is on the rise again, hitting commodities and equities. Oil prices are down 1.5 per cent on the stronger greenback but the dip has been softened by higher refinery demand. Baker Hughes rig count data is released at 1pm ET Friday.
Asian markets closed mostly lower with Australian resources producers under pressure from the rising US dollar. Japan’s government bond yields fell, although a lower yen helped exporters; the Nikkei closed lower. China and Taiwan are closed for a public holiday.
European indexes are lower too as investors seek safer havens with government bonds hitting record highs. The Eurozone is anxious ahead of the UK’s Brexit vote which is less than 2 weeks away.
Elsewhere, Russia’s central bank has cut its interest rate to 10.5 per cent from 11 per cent.
Wall Street and Toronto are expected to open lower.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,985.19 (-0.11 per cent) | +0.32 per cent | -0.08 per cent |
| TSX Composite | 14,240.02 (-0.51 per cent) | +3.37 per cent | -4.36 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE (previous) | 6,130.12 (-1.63 per cent) | -0.43 per cent | -10.25 per cent |
| German DAX | 9,877.30 (-2.10 per cent) | -1.67 per cent | -12.32 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,163.99 (-0.41 per cent) | +3.21 per cent | -40.50 per cent |
| Japan Nikkei | 16,601.36 (-0.40 per cent) | +0.22 per cent | -17.19 per cent |
| Other Data (at 5.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 51.27 (-1.31 per cent) |
49.80 (-1.50 per cent) |
1271.40 (-0.10 per cent) |
U$0.7849 |
| Aus. Dollar |
|||
| U$0.7411 | |||
Another lending crisis is brewing
Online lenders could face issues according to a Reuters report. It says that investors and lending company executives have flagged concerns that some online lenders’ automated systems have failed to detect multiple loans to borrowers.
The ‘soft’ credit checks made by automated systems mean that borrowers can often ‘stack’ loans without scrutiny of their financial circumstances, in order to use one loan to repay a previous one.
