LONDON/NEW YORK, 18 December 2003 — The euro and pound set another series of multi-year highs in late European trade as the hapless dollar continued to be mired in a sentiment-driven downtrend, analysts said. The single European currency stood at $1.2388, after reaching a new record high of $1.2392 earlier in the day. It stood at $1.2329 in New York late Tuesday.
The pound pierced through the $1.76 level for another 11-year high of $1.7624, up from $1.7552 on Tuesday. And the dollar was worth 107.39 yen against 107.45 on Tuesday.
Stocks sagged in midday trading in the United States as investors locked in gains from the previous session’s heady run-up in the Dow amid mixed earnings news.
Earlier in the session, stocks traded deeper in negative territory after Tuesday’s rally sent the Dow Jones industrial average to its highest close in almost 19 months on data underscoring a strongly rebounding economy. The Dow was down 12.96 points, or 0.13 percent, at 10,116.60. The broader Standard & Poor’s 500 Index fell 1.88 points, or 0.17 percent, to 1,073.25. The technology-heavy NASDAQ Composite Index dipped 6.62 points, or 0.34 percent, to 1,917.67.
Asian stock markets dived after news of a fresh SARS case in Taiwan. The region’s biggest market in Tokyo was already down when news came at midday that a researcher into Severe Acute Respiratory Syndrome at a military hospital in Taiwan, who had recently traveled to Singapore, had tested positive for the disease.
Japanese share prices closed down 1.74 percent as concerns about the impact of a stronger yen on exports were compounded by news of a fresh SARS case in Taiwan. The Tokyo Stock Exchange’s Nikkei-225 index lost 178.96 points to end the day at 10,092.64 while the broader Topix index of all first section shares fell 14.87 points or 1.5 percent to 989.95.
Singapore share prices closed 0.32 percent lower, with sentiment hit by the fresh SARS case in Taiwan and data showing slower-than-expected growth in key November exports, dealers said. The Straits Times index dropped 5.47 points to 1,723.57 and the All-Singapore Equities index fell 2.75 points to 463.13.
Oil prices leapt after weekly data showed a bigger-than-expected fall in US commercial stockpiles of crude oil, with inventories of distillate fuels used for heating also falling. The price of benchmark Brent North Sea crude oil for January delivery rose 62 cents per barrel to $30.59 in London. New York’s reference light sweet crude also showed a gain of 63 cents to $33.52.
