The US dollar held steady on Tuesday as investors braced for a critical inflation report that could shape expectations for Federal Reserve interest rate cuts next month. The Australian dollar also remained flat ahead of the Reserve Bank of Australia’s (RBA) closely watched policy decision. As per Reuters, the US dollar index, which tracks the greenback against six major currencies, including the euro and yen, was stable at 98.497 as of 0046 GMT, after gaining 0.5 per cent over the past two sessions. The rise followed earlier losses sparked by US President Donald Trump’s dovish-leaning pick to replace a Fed governor and similarly inclined potential candidates for chairman, which led traders to increase bets on monetary easing.<h2>Fed rate cut speculation builds ahead of CPI release</h2>Federal Reserve officials have signalled growing concerns over the US labour market, hinting at a possible interest rate cut as early as September. Market pricing reflects about an 89 per cent probability of a quarter-point reduction on September 17, according to Reuters data. Cooling inflation could strengthen the case for a cut, but analysts warn that any signs Trump’s tariffs are fuelling price pressures may keep the Fed on hold.&nbsp;Economists polled by Reuters expect core US consumer price inflation to have risen 0.3 per cent in July, pushing the annual rate to 3 per cent. TD Securities strategists wrote in a research note that the “risk-reward heading into US CPI this week is for a modest USD bounce,” as an upside surprise could challenge expectations for an almost fully priced-in rate cut. They added that a downside miss would likely have less impact on the dollar, with a larger 50-basis-point cut more likely to be triggered by further labour market deterioration rather than soft CPI figures.<h2>Currency market snapshot</h2>On Tuesday, the greenback inched 0.1 per cent higher to 148.28 yen, while the euro was unchanged at $1.1615. The yuan traded flat at 7.1935 per dollar in offshore markets. According to Reuters, the dollar’s moves were largely unaffected by Trump’s Monday executive order extending a 90-day pause on sharply higher tariffs for Chinese imports, a decision widely anticipated by traders.&nbsp;The US and China are working to finalise a deal that would avert triple-digit import duties. A US official told Reuters that American chipmakers Nvidia and AMD had agreed to allocate 15 per cent of their China sales revenues to the US government to secure export licences for semiconductors.&nbsp;The Australian dollar traded at $0.6518; little changed from Monday’s levels. Economists widely expect the RBA to cut rates by a quarter point following weaker-than-expected second-quarter inflation data and a rise in unemployment to a three-and-a-half-year high.However, as per Reuters, last month’s surprise hold has left traders cautious, with a recent shift in the central bank’s decision-making process adding uncertainty to the outcome.&nbsp;In cryptocurrency markets, bitcoin was steady at around $118,845, after surging as high as $122,308.25 on Monday , close to its all-time high of $123,153.22 reached in mid-July.&nbsp;(With inputs from the agencies)&nbsp; &nbsp;

The dollar index remained at 98.497. Speculation of a September rate cut increased due to concerns over the labour market and expected core inflation rises. The greenback rose slightly against the yen while the euro remained unchanged. 

The US dollar held steady on Tuesday as investors braced for a critical inflation report that could shape expectations for Federal Reserve interest rate cuts next month. The Australian dollar also remained flat ahead of the Reserve Bank of Australia’s (RBA) closely watched policy decision. As per Reuters, the US dollar index, which tracks the greenback against six major currencies, including the euro and yen, was stable at 98.497 as of 0046 GMT, after gaining 0.5 per cent over the past two sessions. The rise followed earlier losses sparked by US President Donald Trump’s dovish-leaning pick to replace a Fed governor and similarly inclined potential candidates for chairman, which led traders to increase bets on monetary easing. Fed rate cut speculation builds ahead of CPI release Federal Reserve officials have signalled growing concerns over the US labour market, hinting at a possible interest rate cut as early as September. Market pricing reflects about an 89 per cent probability of a quarter-point reduction on September 17, according to Reuters data. Cooling inflation could strengthen the case for a cut, but analysts warn that any signs Trump’s tariffs are fuelling price pressures may keep the Fed on hold. Economists polled by Reuters expect core US consumer price inflation to have risen 0.3 per cent in July, pushing the annual rate to 3 per cent. TD Securities strategists wrote in a research note that the “risk-reward heading into US CPI this week is for a modest USD bounce,” as an upside surprise could challenge expectations for an almost fully priced-in rate cut. They added that a downside miss would likely have less impact on the dollar, with a larger 50-basis-point cut more likely to be triggered by further labour market deterioration rather than soft CPI figures. Currency market snapshot On Tuesday, the greenback inched 0.1 per cent higher to 148.28 yen, while the euro was unchanged at $1.1615. The yuan traded flat at 7.1935 per dollar in offshore markets. According to Reuters, the dollar’s moves were largely unaffected by Trump’s Monday executive order extending a 90-day pause on sharply higher tariffs for Chinese imports, a decision widely anticipated by traders. The US and China are working to finalise a deal that would avert triple-digit import duties. A US official told Reuters that American chipmakers Nvidia and AMD had agreed to allocate 15 per cent of their China sales revenues to the US government to secure export licences for semiconductors. The Australian dollar traded at $0.6518; little changed from Monday’s levels. Economists widely expect the RBA to cut rates by a quarter point following weaker-than-expected second-quarter inflation data and a rise in unemployment to a three-and-a-half-year high. However, as per Reuters, last month’s surprise hold has left traders cautious, with a recent shift in the central bank’s decision-making process adding uncertainty to the outcome. In cryptocurrency markets, bitcoin was steady at around $118,845, after surging as high as $122,308.25 on Monday , close to its all-time high of $123,153.22 reached in mid-July. (With inputs from the agencies)

The US dollar stabilized as investors anticipated an important inflation report influencing potential Federal Reserve interest rate cuts.&nbsp;&nbsp;

Dollar holds gains on Fed cut bets; RBA decision keeps Aussie in check

The Euro dropped to its lowest level in nearly seven months against the US dollar on November 11, weighed down by investor worries about possible tariffs by a new White House administration which could hurt the Euro area's economy, according to a detailed report by Reuters.

The Euro has edged lower since Donald Trump won the US presidential election last week, sparking concerns about possible tariffs by his incoming administration, the Reuters report explained further.

Several media outlets reported on November 8, that Trump was lining up Robert Lighthizer, seen as a hawk on trade, to return to his previous post of running trade policy, which further weighed on the currency. Sources familiar with the matter said Trump has not asked Lighthizer to return to the agency overseeing trade policy.

"What's going on today is just an extension or continuation of what's been going on since the election," said Eugene Epstein, head of trading and structured products, North America, at Moneycorp in New Jersey.

"Every country or multi-country union that is facing any potential threat in tariffs is having a hard time against the dollar." The EU's single currency was down 0.61 per cent at $1.0654. It had dropped as low as 1.0629, the lowest level since mid-April this year.

Dollar index has touched its highest level since July<o:p></o:p>

Whereas, the US dollar index, a measure of the dollar's value relative to a basket of foreign currencies - slightly overshot the highs seen right after the US presidential election, with markets still waiting for clarity about future US policy.

The dollar index was 0.48 per cent firmer at 105.51, after hitting 105.70, its highest level since July. Last week, it jumped more than 1.5 per cent to 105.44, after US election results showed Trump's victory.

"It does feel like the markets are pricing in a red wave more and more," said Bipan Rai, managing director at BMO Global Asset Management, referring to Trump's Republican Party. "I think the dollar is the beneficiary of that."

Measures expected to be taken by the US president-elect - including tariffs and tax cuts - should put upward pressure on inflation and bond yields while limiting the Fed's scope to ease policy and supporting the greenback.

Tariffs are going to be the top agenda of Trump<o:p></o:p>

"One of the key questions after the election is, 'What's going to be at the top of the legislative agenda for the Trump administration?'" Rai said. "And it feels more and more like it's going to be tariffs, which, of course, he can pretty much push through without needing Congress on his side to help him do that."

The dollar gained 0.69 per cent on the yen to 153.69, having been dragged off last week's top of 154.70 by the risk of Japanese intervention. Further, on November 6, it hit 154.68, its highest level since July.

Bitcoin has scaled a new record high<o:p></o:p>

Bitcoin soared to a record high above $87,000 on November 11, on expectations that crypto-currencies will boom in a favourable regulatory environment following the election of Trump as president and crypto candidates to Congress.

Bitcoin gained 13.95 per cent to $87,215.00. Ethereum rose 14.27 per cent to $3,363.80. The market participants and global investors will closely follow these developments in the dollar index and the movement in crypto-currencies as it will help them in taking informed investment decisions.

The Euro dropped to its lowest level in nearly seven months against the US dollar on November 11, weighed down by investor worries about possible tariffs by a new White House administration which could hurt the Euro area's economy, according to a detailed report by Reuters.

The Euro dropped to its lowest level in nearly seven months against the US dollar on November 11, weighed down by investor worries about possible tariffs by a new White House administration which could hurt the Euro area's economy, according to a detailed report by Reuters. The Euro has edged lower since Donald Trump won the US presidential election last week, sparking concerns about possible tariffs by his incoming administration, the Reuters report explained further. Several media outlets reported on November 8, that Trump was lining up Robert Lighthizer, seen as a hawk on trade, to return to his previous post of running trade policy, which further weighed on the currency. Sources familiar with the matter said Trump has not asked Lighthizer to return to the agency overseeing trade policy. "What's going on today is just an extension or continuation of what's been going on since the election," said Eugene Epstein, head of trading and structured products, North America, at Moneycorp in New Jersey. "Every country or multi-country union that is facing any potential threat in tariffs is having a hard time against the dollar." The EU's single currency was down 0.61 per cent at $1.0654. It had dropped as low as 1.0629, the lowest level since mid-April this year. Dollar index has touched its highest level since July Whereas, the US dollar index, a measure of the dollar's value relative to a basket of foreign currencies - slightly overshot the highs seen right after the US presidential election, with markets still waiting for clarity about future US policy. The dollar index was 0.48 per cent firmer at 105.51, after hitting 105.70, its highest level since July. Last week, it jumped more than 1.5 per cent to 105.44, after US election results showed Trump's victory. "It does feel like the markets are pricing in a red wave more and more," said Bipan Rai, managing director at BMO Global Asset Management, referring to Trump's Republican Party. "I think the dollar is the beneficiary of that." Measures expected to be taken by the US president-elect - including tariffs and tax cuts - should put upward pressure on inflation and bond yields while limiting the Fed's scope to ease policy and supporting the greenback. Tariffs are going to be the top agenda of Trump "One of the key questions after the election is, 'What's going to be at the top of the legislative agenda for the Trump administration?'" Rai said. "And it feels more and more like it's going to be tariffs, which, of course, he can pretty much push through without needing Congress on his side to help him do that." The dollar gained 0.69 per cent on the yen to 153.69, having been dragged off last week's top of 154.70 by the risk of Japanese intervention. Further, on November 6, it hit 154.68, its highest level since July. Bitcoin has scaled a new record high Bitcoin soared to a record high above $87,000 on November 11, on expectations that crypto-currencies will boom in a favourable regulatory environment following the election of Trump as president and crypto candidates to Congress. Bitcoin gained 13.95 per cent to $87,215.00. Ethereum rose 14.27 per cent to $3,363.80. The market participants and global investors will closely follow these developments in the dollar index and the movement in crypto-currencies as it will help them in taking informed investment decisions.

Euro scales near 7-month low vs dollar as tariff concerns weigh: Report

The dollar began the week on a cautious note Monday as markets prepared for upcoming US inflation data and a busy schedule of Federal Reserve speeches. Meanwhile, the yuan continued to struggle, weighed down by the lacklustre response to Beijing's most recent stimulus package, according to a detailed Reuters report.

Weak economic background in China<o:p></o:p>

Highlighting the weak background in China, data out over the weekend showed consumer prices rose at the slowest pace in four months in October while producer price deflation deepened. Reports on retail sales and industrial output due Friday should show whether Beijing's various attempts at stimulus are having any real impact on demand, the Reuters report detailed further.

Disappointment at the latest package had seen the Australian and New Zealand dollars slide on Friday as both countries are major exporters to China. The dollar stood at 7.1970 yuan, having jumped 0.7 per cent on Friday, and looks set to again test the 7.2000 barrier.

Moves were minor overall, with US bond markets on holiday though stocks and futures are open. The dollar was up 0.1 per cent on the yen at 152.90, having been dragged off last week's top of 154.70 by the risk of Japanese intervention. The dollar index was a fraction firmer at 105.00, after gaining 0.6 per cent last week mainly against the euro.

The Reuters report further elaborated that, the single currency was stuck at $1.0711, having shed 1 per cent last week to as low as $1.0683. Support now lies around $1.0667 and $1.0601. Political uncertainty remained a drag as German Chancellor Olaf Scholz said he would be willing to call a vote of confidence before Christmas, paving the way for snap elections following the collapse of his governing coalition.

The threat of a global trade war looms<o:p></o:p>

The Euro has been pressured by US President-elect Donald Trump's proposals for tariffs on imports, which could hurt European exports and risk a global trade war. Analysts also assume Trump's policies would put upward pressure on US inflation and bond yields while limiting the Federal Reserve's scope to ease policy. 

"Given this, we still expect that the Fed will cut another 25bp at the December meeting, but thereafter will only cut once per quarter, in contrast to our previous forecast for a 25bp cut every meeting," said JPMorgan economist Michael Feroli.

"In addition, we now look for the Fed to conclude once it reaches 3.5 per cent, versus our earlier forecast for a 3.0 per cent terminal rate."

A host of Fed officials speak this week, including Chair Jerome Powell on November 14, so there will be plenty of guidance on the outlook for rates.

Data will also be influential as US consumer prices are due November 14 and a core reading above the 0.3 per cent forecasted would further reduce the chance of a December easing. All this was seen as bullish for the dollar over the long term, though it was yet to be seen what Trump's policies would be in practice. 

His support of cryptocurrencies has been enough to propel Bitcoin above $80,000 for the first time as investors wager on more favourable regulation. 

Market participants and global investors will follow these developments carefully and see how the Trump administration takes a stand on tariffs. This will help them in taking informed investment decisions.

The dollar began the week on a cautious note Monday as markets prepared for upcoming US inflation data and a busy schedule of Federal Reserve speeches. Meanwhile, the yuan continued to struggle, weighed down by the lacklustre response to Beijing's most recent stimulus package, according to a detailed Reuters report.

The dollar began the week on a cautious note Monday as markets prepared for upcoming US inflation data and a busy schedule of Federal Reserve speeches. Meanwhile, the yuan continued to struggle, weighed down by the lacklustre response to Beijing's most recent stimulus package, according to a detailed Reuters report. Weak economic background in China Highlighting the weak background in China, data out over the weekend showed consumer prices rose at the slowest pace in four months in October while producer price deflation deepened. Reports on retail sales and industrial output due Friday should show whether Beijing's various attempts at stimulus are having any real impact on demand, the Reuters report detailed further. Disappointment at the latest package had seen the Australian and New Zealand dollars slide on Friday as both countries are major exporters to China. The dollar stood at 7.1970 yuan, having jumped 0.7 per cent on Friday, and looks set to again test the 7.2000 barrier. Moves were minor overall, with US bond markets on holiday though stocks and futures are open. The dollar was up 0.1 per cent on the yen at 152.90, having been dragged off last week's top of 154.70 by the risk of Japanese intervention. The dollar index was a fraction firmer at 105.00, after gaining 0.6 per cent last week mainly against the euro. The Reuters report further elaborated that, the single currency was stuck at $1.0711, having shed 1 per cent last week to as low as $1.0683. Support now lies around $1.0667 and $1.0601. Political uncertainty remained a drag as German Chancellor Olaf Scholz said he would be willing to call a vote of confidence before Christmas, paving the way for snap elections following the collapse of his governing coalition. The threat of a global trade war looms The Euro has been pressured by US President-elect Donald Trump's proposals for tariffs on imports, which could hurt European exports and risk a global trade war. Analysts also assume Trump's policies would put upward pressure on US inflation and bond yields while limiting the Federal Reserve's scope to ease policy. "Given this, we still expect that the Fed will cut another 25bp at the December meeting, but thereafter will only cut once per quarter, in contrast to our previous forecast for a 25bp cut every meeting," said JPMorgan economist Michael Feroli. "In addition, we now look for the Fed to conclude once it reaches 3.5 per cent, versus our earlier forecast for a 3.0 per cent terminal rate." A host of Fed officials speak this week, including Chair Jerome Powell on November 14, so there will be plenty of guidance on the outlook for rates. Data will also be influential as US consumer prices are due November 14 and a core reading above the 0.3 per cent forecasted would further reduce the chance of a December easing. All this was seen as bullish for the dollar over the long term, though it was yet to be seen what Trump's policies would be in practice. His support of cryptocurrencies has been enough to propel Bitcoin above $80,000 for the first time as investors wager on more favourable regulation. Market participants and global investors will follow these developments carefully and see how the Trump administration takes a stand on tariffs. This will help them in taking informed investment decisions.

Dollar prepares for US inflation data and remarks from multiple Fed officials

Asian markets are trading mixed ahead of China's retail sales data. Watch out for Japan's topix and India's Nifty50 which are both close to some new highs. The topix is just points shy of its 3-decade high while the nifty is just 2% short of its new lifetime high.

Dollar Index Eases: Gold Rises

Investors rushed into&nbsp;safe-haven&nbsp;assets on Friday after&nbsp;US&nbsp;airstrikes in Iraq killed a senior Iranian military official, sending the Japanese&nbsp;yen&nbsp;to a three-month high, while the&nbsp;<a href="https://www.wionews.com/business-economy/new-year-cheer-rupee-rises-15-paise-to-6962-against-us-dollar-in-early-trade-187635">US&nbsp;dollar&nbsp;index</a> was knocked by the weakest domestic factory activity in a decade.

In addition to the&nbsp;yen,&nbsp;US&nbsp;Treasuries, German bunds and gold rallied after the overnight airstrike&nbsp;in Baghdad killed <a href="https://www.wionews.com/world/deputy-commander-of-quds-force-to-replace-soleimani-irans-supreme-leader-ayatollah-ali-khamenei-271905">Qassem&nbsp;Soleimani</a>, Tehran's most prominent military commander and the architect of its growing military influence in the Middle East.

"Overall, geopolitical risk premia have risen substantially overnight," said Karl Schamotta, chief market strategist at Cambridge Global Payments. Investors were "really looking for&nbsp;safe&nbsp;havens and a port in the storm," he added.

The Japanese&nbsp;yen&nbsp;had risen as high as 107.82 per&nbsp;dollar&nbsp;and was last up 0.48 per cent&nbsp;on the day at 108.04. The&nbsp;yen&nbsp;is often seen as a&nbsp;haven&nbsp;from risk, given Japan's status as the world's largest creditor nation. A holiday in Tokyo also made for thin conditions, exaggerating the move.

The&nbsp;US&nbsp;dollar&nbsp;index&nbsp;initially benefited from the move into&nbsp;safe-haven&nbsp;assets, but those gains were erased after the Institute for Supply Management (ISM) reported that the manufacturing sector contracted significantly in December. It was last up 0.03 per cent&nbsp;on the day at 96.873.

The attack sparked concerns about crude supply disruptions, lifting oil prices more than $3. Petrocurrencies gained slightly on the higher crude prices, but those were then largely offset by the overall move away from risk, said Schamotta.

The&nbsp;US&nbsp;manufacturing sector contracted in December by the most in more than a decade, with order volumes crashing to a near 11-year low and factory employment falling for a fifth straight month, according to a report from <a href="https://www.wionews.com/business-economy/us-manufacturing-contracts-for-first-time-in-3-years-industry-survey-247442">ISM</a> released on Friday.

"That is a depressing number," said Schamotta.

It suggests "<a href="https://www.wionews.com/world/us-farmers-see-another-bleak-year-despite-phase-1-trade-deal-271864">trade war-related</a> uncertainty has actually damaged the manufacturing sector on a sustained basis and that points to weakness in GDP, particularly in the coming quarter because what you're likely to see is an inventory drawdown as opposed to continued build."

The longer-term effects on the&nbsp;dollar&nbsp;are unclear. Though it weakened Friday, the greenback may ultimately benefit if slower&nbsp;US&nbsp;manufacturing dents hopes for global growth in 2020.

"The idea that other countries that are large exporters to the&nbsp;US&nbsp;might see a large rebound in the near term,&nbsp;that idea is losing traction here," said Schamotta.

Investors rushed into safe-haven assets on Friday after US airstrikes in Iraq killed a senior Iranian military official, sending the Japanese yen to a three-month high, while the US dollar index was knocked by the weakest domestic factory activity in a decade.

Investors rushed into safe-haven assets on Friday after US airstrikes in Iraq killed a senior Iranian military official, sending the Japanese yen to a three-month high, while the US dollar index was knocked by the weakest domestic factory activity in a decade. In addition to the yen, US Treasuries, German bunds and gold rallied after the overnight airstrike in Baghdad killed Qassem Soleimani, Tehran's most prominent military commander and the architect of its growing military influence in the Middle East. "Overall, geopolitical risk premia have risen substantially overnight," said Karl Schamotta, chief market strategist at Cambridge Global Payments. Investors were "really looking for safe havens and a port in the storm," he added. The Japanese yen had risen as high as 107.82 per dollar and was last up 0.48 per cent on the day at 108.04. The yen is often seen as a haven from risk, given Japan's status as the world's largest creditor nation. A holiday in Tokyo also made for thin conditions, exaggerating the move. The US dollar index initially benefited from the move into safe-haven assets, but those gains were erased after the Institute for Supply Management (ISM) reported that the manufacturing sector contracted significantly in December. It was last up 0.03 per cent on the day at 96.873. The attack sparked concerns about crude supply disruptions, lifting oil prices more than $3. Petrocurrencies gained slightly on the higher crude prices, but those were then largely offset by the overall move away from risk, said Schamotta. The US manufacturing sector contracted in December by the most in more than a decade, with order volumes crashing to a near 11-year low and factory employment falling for a fifth straight month, according to a report from ISM released on Friday. "That is a depressing number," said Schamotta. It suggests "trade war-related uncertainty has actually damaged the manufacturing sector on a sustained basis and that points to weakness in GDP, particularly in the coming quarter because what you're likely to see is an inventory drawdown as opposed to continued build." The longer-term effects on the dollar are unclear. Though it weakened Friday, the greenback may ultimately benefit if slower US manufacturing dents hopes for global growth in 2020. "The idea that other countries that are large exporters to the US might see a large rebound in the near term, that idea is losing traction here," said Schamotta.

Safe-haven yen lifted, US dollar hits in Grim data after Qassem Soleimani strike

&nbsp;A broad gauge of <a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">Asian share </a>markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US&nbsp;crude inventory drawdowns, trade optimism and unrest in the Middle East.

But European shares were expected to open lower as investors take a breather from recent rallies.

In early European trade, the pan-region Euro Stoxx 50 futures were down 0.16 per cent&nbsp;at 3,764, German DAX futures were down 0.22 per cent&nbsp;at 13,291.5 and FTSE futures were down 0.11&nbsp;per cent&nbsp;at 7,578.5.

MSCI's broadest index of Asia-Pacific shares outside Japan rose to its highest since June 19, 2018, before trimming gains. It was last up by 0.05 per cent.

Chinese blue chips, which had started the day lower, were up 1.13&nbsp;per cent&nbsp;in afternoon trade, bolstered by a report that 2019 retail sales are forecast to rise 8&nbsp;per cent&nbsp;and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth.

But Australian shares finished 0.25 per cent&nbsp;lower as investors continued to consolidate recent gains.

Japan's Nikkei stock index finished its last trading day of the year down 0.76 per cent. The index gained 18.2per cent&nbsp;in 2019 after dropping 12.8 per cent&nbsp;last year. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent&nbsp;and putting it on track for its strongest month since January.

Kay Van-Petersen, the global macro strategist at <a href="https://www.wionews.com/business-economy/global-markets-china-lifts-asian-shares-oil-up-on-drawdowns-mideast-tensions-270929">Saxo Capital Markets</a>, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback.&nbsp;I don't think it's going to be significant by any means."

Global equity markets gained late last week, with the S&amp;P 500 and the Dow Jones Industrial Average closing at records on Friday.

The Dow ended 0.08 per cent&nbsp;higher at 28,645.26 and the S&amp;P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 per cent&nbsp;to 9,006.62.

Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months.

On Monday, global benchmark Brent crude was up 0.31per cent&nbsp;to $68.37 per barrel, while US&nbsp;<a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">West Texas Intermediate</a> crude added 0.13 per cent&nbsp;to $61.80, reversing an earlier decline.

Oil's gains followed news of <a href="https://www.wionews.com/world/25-isis-terrorists-killed-in-us-airstrikes-in-iraq-175533">US&nbsp;airstrikes</a> in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US&nbsp;officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US&nbsp;interests.

But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks.

"Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets.

Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations.

Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December&nbsp;20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday.

Gold also continued its run-up, boosted by a weak dollar, after posting its best week in more than four months on Friday amid thin trading volumes.

The precious metal on Monday rose 0.3 per cent&nbsp;to $1,515 per ounce on the spot market.

In the currency markets, the dollar was 0.27&nbsp;per cent&nbsp;lower against the yen at 109.11 and the euro was up 0.23&nbsp;per cent&nbsp;on the day at $1.1201.

The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.14&nbsp;per cent&nbsp;to 96.786.

The yield on benchmark 10-year Treasury notes was at 1.877 per cent&nbsp;compared with its US&nbsp;close of 1.873&nbsp;per cent&nbsp;on Friday, while the two-year yield edged down to 1.5812 per cent&nbsp;compared with a US&nbsp;close of 1.589 per cent.

A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East.

A broad gauge of Asian share markets rose to an 18-month high on Monday as Chinese equities gained, while oil touched three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East. But European shares were expected to open lower as investors take a breather from recent rallies. In early European trade, the pan-region Euro Stoxx 50 futures were down 0.16 per cent at 3,764, German DAX futures were down 0.22 per cent at 13,291.5 and FTSE futures were down 0.11 per cent at 7,578.5. MSCI's broadest index of Asia-Pacific shares outside Japan rose to its highest since June 19, 2018, before trimming gains. It was last up by 0.05 per cent. Chinese blue chips, which had started the day lower, were up 1.13 per cent in afternoon trade, bolstered by a report that 2019 retail sales are forecast to rise 8 per cent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth. But Australian shares finished 0.25 per cent lower as investors continued to consolidate recent gains. Japan's Nikkei stock index finished its last trading day of the year down 0.76 per cent. The index gained 18.2per cent in 2019 after dropping 12.8 per cent last year. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January. Kay Van-Petersen, the global macro strategist at Saxo Capital Markets, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback. I don't think it's going to be significant by any means." Global equity markets gained late last week, with the S&P 500 and the Dow Jones Industrial Average closing at records on Friday. The Dow ended 0.08 per cent higher at 28,645.26 and the S&P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 per cent to 9,006.62. Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months. On Monday, global benchmark Brent crude was up 0.31per cent to $68.37 per barrel, while US West Texas Intermediate crude added 0.13 per cent to $61.80, reversing an earlier decline. Oil's gains followed news of US airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US interests. But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks. "Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets. Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations. Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday. Gold also continued its run-up, boosted by a weak dollar, after posting its best week in more than four months on Friday amid thin trading volumes. The precious metal on Monday rose 0.3 per cent to $1,515 per ounce on the spot market. In the currency markets, the dollar was 0.27 per cent lower against the yen at 109.11 and the euro was up 0.23 per cent on the day at $1.1201. The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.14 per cent to 96.786. The yield on benchmark 10-year Treasury notes was at 1.877 per cent compared with its US close of 1.873 per cent on Friday, while the two-year yield edged down to 1.5812 per cent compared with a US close of 1.589 per cent.

Global Markets: Asian shares at 18-month highs; Nikkei finishes year up 18%

A broad gauge of <a href="https://www.wionews.com/business-economy/asian-shares-near-18-month-high-bask-in-trade-deal-afterglow-269696">Asian share</a> markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US&nbsp;crude inventory drawdowns, trade optimism and unrest in the Middle East.

MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.2 per cent, turning around from an earlier loss. The index rose to its highest since June 19.

Chinese blue chips, which had started the day lower, were up 1.24&nbsp;per cent at the midday break, bolstered by a report that 2019 retail sales are forecast to rise 8&nbsp;per cent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth.

But Australian shares remained down 0.44 per cent as investors continued to consolidate recent gains. Japan's Nikkei stock index slid 0.58 per cent. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January.

Kay Van-Petersen, a global macro strategist at <a href="https://www.wionews.com/business-economy/asian-shares-climb-as-trump-says-us-china-trade-deal-near-264827">Saxo Capital Markets</a>, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback&nbsp;I don't think it's going to be significant by any means."

Global equity markets gained late last week, with the S&amp;P 500 and the Dow Jones Industrial Average closing at records on Friday.

The Dow ended 0.08per cent higher at 28,645.26 and the S&amp;P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17&nbsp;per cent&nbsp;to 9,006.62.

Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months.

On Monday, global benchmark Brent crude was up 0.18&nbsp;per cent to $68.28 per barrel, while US&nbsp;West Texas Intermediate crude added 0.05% to $61.75, reversing an earlier decline.

Oil's gains followed news of US&nbsp;airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US&nbsp;officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US&nbsp;interests.

But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks.

"Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets.

Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations.

Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December&nbsp;20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday.

Gold also continued its run-up, after posting its best week in more than four months on Friday amid thin trading volumes, in a sign that some investors continue to see risks to global growth and US-China trade.

The precious metal on Monday rose 0.33&nbsp;per cent to $1,515.40 per ounce on the spot market.

In the currency market, the dollar was 0.30&nbsp;per cent lower against the yen at 109.08 and the euro was up 0.27 per cent on the day at $1.1194.

The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.2&nbsp;per cent &nbsp;to 96.736.

The yield on benchmark 10-year Treasury notes was at 1.8752 per cent &nbsp;compared with its US&nbsp;close of 1.873&nbsp;per cent &nbsp;on Friday, while the two-year yield edged down to 1.5832 per cent&nbsp;compared with a US&nbsp;close of 1.589 per cent .

A broad gauge of Asian share markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East.

A broad gauge of Asian share markets rose to the highest in 18 months on Monday as Chinese equities gained, while oil hovered near three-month highs on a combination of US crude inventory drawdowns, trade optimism and unrest in the Middle East. MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.2 per cent, turning around from an earlier loss. The index rose to its highest since June 19. Chinese blue chips, which had started the day lower, were up 1.24 per cent at the midday break, bolstered by a report that 2019 retail sales are forecast to rise 8 per cent and expectations that a new benchmark for floating-rate loans could lower borrowing costs and boost flagging economic growth. But Australian shares remained down 0.44 per cent as investors continued to consolidate recent gains. Japan's Nikkei stock index slid 0.58 per cent. Easing trade war worries and reduced uncertainty over the United Kingdom's plans to leave the European Union after British elections returned a strong Conservative majority have offered a lift to global equities this month, helping the broad MSCI Asia index rise more than 6 per cent and putting it on track for its strongest month since January. Kay Van-Petersen, a global macro strategist at Saxo Capital Markets, said that limited liquidity near the year-end and the easing of US-China trade and Brexit uncertainties has "just left us drifting up higher. So even if there is a pullback I don't think it's going to be significant by any means." Global equity markets gained late last week, with the S&P 500 and the Dow Jones Industrial Average closing at records on Friday. The Dow ended 0.08per cent higher at 28,645.26 and the S&P edged up just 0.11 points to 3,240.02. The Nasdaq Composite lost steam at the close, falling 0.17 per cent to 9,006.62. Oil also gained on Friday, with prices posting their fourth consecutive weekly gain to steady around their highest in three months. On Monday, global benchmark Brent crude was up 0.18 per cent to $68.28 per barrel, while US West Texas Intermediate crude added 0.05% to $61.75, reversing an earlier decline. Oil's gains followed news of US airstrikes in Iraq and Syria against Kataib Hezbollah, an Iran-backed militia group. US officials said Sunday that the attacks were successful, but warned that "additional actions" may be taken to defend US interests. But Stephen Innes, strategist at AxiTrader, said that the rise of shale oil production in the United States would offset any geopolitical risks. "Shale can really ramp up more volumes to accommodate any shortfall that could possibly be triggered by an escalation in Syria," he said, adding that an upsurge in populism in Iraq posed a larger risk to markets. Iraq's oil ministry said on Sunday that the halting of oil production at Iraq's southern Nassiriya oilfield by protestors would not affect the country's exports and operations. Oil prices were also supported by a bigger-than-expected decline in crude inventories in the United States, the world's biggest fuel consumer. Stockpiles fell by 5.5 million barrels in the week to December 20, far exceeding a 1.7-million-barrel drop forecast in a Reuters poll, the government data showed on Friday. Gold also continued its run-up, after posting its best week in more than four months on Friday amid thin trading volumes, in a sign that some investors continue to see risks to global growth and US-China trade. The precious metal on Monday rose 0.33 per cent to $1,515.40 per ounce on the spot market. In the currency market, the dollar was 0.30 per cent lower against the yen at 109.08 and the euro was up 0.27 per cent on the day at $1.1194. The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.2 per cent to 96.736. The yield on benchmark 10-year Treasury notes was at 1.8752 per cent compared with its US close of 1.873 per cent on Friday, while the two-year yield edged down to 1.5832 per cent compared with a US close of 1.589 per cent .

Global Markets: China lifts Asian shares; oil up on drawdowns, Mideast tensions

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