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Leading finance news today, there’s been a big sell-off from overseas markets with the Dow Jones averaging more than 300 points wiping out gains for the year. Analysts1 say the pessimism2 was due to worries over when the US Federal Reserve would move to raise those interest rates. So, let’s take a look at the markets, and US stocks have closed more than 1.5% lower at one-month low pressured by surge in the dollar and some weakness in oil as well. The Dow closed in the red, and so did the S&P 500, breaching3 its 50-day moving average which is an indicator4 of that market trade. You can see red across the board there. Only the Nasdaq held on to the gains of 2.61% for the year. In London, FTSE also suffered its biggest decline so far this year falling 2.5%. Let’s look at commodity prices now, West Texas Crude is trading at 48 US dollars a barrel. Tapis is at 59 US dollars a barrel, and gold is at 1161 US dollars an ounce, while in currencies, the US dollar advanced more than 1% to 12-year highs as the euro fell below one dollar and 7 cents. That’s also part of the reason why those markets in the US were in the red. The Australian dollar is buying 76 US cents, 71 euro cents and 50 pence sterling5.
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