The European single currency, Euro, on Wednesday, August 23, was up 0.2 percent at $1.1784 EUR= after slipping about 0.5 percent Tuesday on weaker-than-expected German investor confidence.
Also, and euro zone government bond yields rose on Wednesday after a survey showed the bloc’s manufacturing businesses had their best month of growth in six-and-a-half years.
Forecast-beating surveys in the euro zone’s two biggest economies, France and Germany , helped pull the euro up against the dollar EUR=EBS, which had wobbled against the yen overnight on comments from U.S. President Donald Trump.
The pan-European STOXX 600 however, was dragged down by unloved media stocks. WPP shed more than 10 percent after the world’s largest advertising group cut its sales forecast. [.EU]
“At a broad level what PMIs are telling you is that the momentum of the euro zone recovery continues and the strength of the euro is not containing it,” said Investec economist Philip Shaw.
Australian stocks fell 0.2 percent on the day and South Korea’s KOSPI .KS11 ended 0.1 percent higher.
Japan’s Nikkei .N225 bucked the trend and rose 0.3 percent, taking its cues from Wall Street’s technology-led rally on Tuesday.
The dollar wobbled against the yen after Trump told a rally he would be willing to risk a government shut-down to secure funding for a wall on the U.S. border with Mexico.
The dollar was down slightly against the yen at 109.38 yen JPY=, back near the day’s low plumbed after Trump told supporters in Arizona “If we have to close down our government, we’re building that wall”.
The greenback remained clear of a four-month low of 108.605 yen plumbed last week, when turmoil in the White House and geopolitical tensions took a toll on the currency.
The dollar index against a basket of six major currencies was down slightly at 93.412 .DXY after rising 0.5 percent the previous day.
