Dollar index marks 110, hits highest level since 2002
The U.S. dollar index hit 110.086 in Asia’s morning trade, reaching a new two-decade high.
The Japanese yen weakened further to 140.3 after touching a 24-year low last week. The Korean won was at 1,370.87 against the greenback, a level not seen since April 2009.
CNBC Pro: This tech stock is up nearly 20% over the past year — and one pro says it’s got further to go
Tech stocks have endured a difficult year so far, with some of the biggest names deep in the red.
But one cybersecurity firm has stood out for its relative resilience, and market veteran Nancy Tengler believes the stock is just getting started.
Tengler, who is CEO and chief investment officer of Laffer Tengler Investments, said her bullishness on the firm might be construed as a “controversial,” but argued that it is in fact a safer bet within the tech space.
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— Katrina Bishop
Caixin services PMI show Chinese services activity grew in August
China’s Caixin Services Purchasing Managers’ Index for August came in at 55.0, compared with July’s print of 55.5.
The official non-manufacturing PMI for August is 52.6.
PMI readings are sequential and represent month-on-month expansion or contraction, where the 50-point mark means no change from the month before.
— Abigail Ng
CNBC Pro: Mohamed El-Erian reveals where to invest right now
With stock and bond valuations falling concurrently, investors should be looking to get out of “distorted markets,” according to Mohamed El-Erian, chief economic adviser to Allianz.
“There was a time when all asset prices went up — stocks and bonds — and we forgot about correlations. Why care about correlations when you’re being paid for holding both risk assets and risk mitigating assets? It’s a lovely world,” he told CNBC’s Steve Sedgwick Friday.
“”But the first half taught us, and what we have again learned since the middle of August, [is] that they can both go down at the same time.”
Investors seeking alternatives have a couple of options, El-Erian says.
CNBC Pro subscribers can read more here.
— Elliot Smith and Katrina Bishop
European markets: Here are the opening calls
European stocks are expected to open cautiously higher on Wednesday with the U.K.’s FTSE index seen 18 points higher at 7,560, Germany’s DAX 33 points higher at 13,944, France’s CAC 40 up 18 points at 6,616 and Italy’s FTSE MIB up 42 points at 23,029, according to data from IG.
Data releases include preliminary euro zone unemployment data for the second quarter as well as second quarter gross domestic product. The latest U.K. inflation numbers for July will be released as well as preliminary second quarter Dutch GDP.
Earnings come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.
