SpaceX spectrum deal weighs on US and European telecom stocks
Major US carriers fell between 5.5% and 7.4% before the market opened, while telecom tower stocks rose on expectations of greater infrastructure demand.
Dollar nears 18-month high as euro weakens and bond yields rise
The euro fell 0.2% to $1.1174 as the gap between French and German 10-year bond yields widened by 5 basis points.
The dollar advanced on October 8, approaching an 18-month high after Federal Reserve meeting minutes highlighted policymakers' concerns about inflation. The dollar index gained 0.2% to 102.40, while the euro traded near a 17-month low amid rising oil prices and euro zone bond yields.
Selling in global bond markets has driven currency trading in recent weeks. Yield gaps between Germany and more indebted euro zone countries, including France and Italy, have widened, weighing on the euro. French bonds faced selling pressure over concerns about the country's worsening fiscal position ahead of its presidential election next year.
Tommy von Brömsen, an FX strategist at Handelsbanken, said France's political situation was contributing to euro weakness, alongside the dollar's strength.
Fed officials unanimously approved a rate increase at their September 15-16 meeting. The minutes suggested further tightening might be needed, though expectations for the next meeting changed little. LSEG data showed fed funds futures implied an 80% chance of unchanged rates at the meeting ending October 28, with a December increase fully priced in.
The dollar rose 0.1% against the yen to 158.27, recovering from a brief decline after Japan reported an August current account surplus of 4.062 trillion yen, above economists' median forecast of 3.19 trillion yen. The Australian dollar slipped 0.3% to $0.6943 and the New Zealand dollar declined 0.2% to $0.5588. The dollar was unchanged against the offshore Chinese yuan at 6.7050.