CNY

The Institute for Supply Management said yesterday that its service sector index climbed in November from the month before, providing more evidence of resilience in the American economy. The measure ticked up to 56.5 from October’s 54.4, remaining well above 50, the threshold between expansion and contraction. Investors reacted badly, boosting bets on more hikes from the Federal Reserve, buying the dollar, and selling risk-sensitive currencies en masse. Markets look rudderless this morning, with the greenback holding ground as the other majors turn in a mixed performance. Yields are stable after yesterday’s jump, and equity futures are pointing to a...

The dollar continues to lose altitude as market participants gradually rebalance portfolios ahead of a new calendar year. With US economic outperformance fading, the Federal Reserve expected to slow and then pause its tightening cycle, energy prices falling, and geopolitical shocks fading, many investors have become less willing to crowd into long-greenback positions, and demand for alternatives is growing. Oil prices are steady even after the Group of Seven industrialized democracies agreed to cap shipments of Russian crude at $60 a barrel. Under the plan, Western companies will be barred from insuring, financing, or shipping Russian oil unless it is...