Here’s what a falling U.S. dollar means for the stock market

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 50 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 23%
  • Publisher: 97%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

A weaker dollar isn’t necessarily good for stocks if it reflects big problems on the domestic front.

The U.S. dollar is looking shaky. Barring some sort of currency meltdown, a weaker dollar should be a positive for equities, though foreign stocks will likely benefit more, analysts said.

And a weaker dollar isn’t necessarily good for stocks if it reflects big problems on the domestic front. Meanwhile, the important thing to remember is that any currency’s performance reflects what market participants think of the prospects of a particular economy versus others. The case for U.S. underperformance is also backed up by a look at the negative correlation between the dollar and non-U.S. stocks, which is stronger than the relationship between the currency and U.S. equities, said Gaurav Saroliya, director of macro strategy at Oxford Economics, in a Thursday note .

“Far from being destabilizing for global markets and economy, those episodes were quite positive for growth,” he said, noting the inverse link between the dollar and global economic growth has existed for most of the era of free-floating exchange rates since the 1970s, while periods of rapid dollar appreciation have been more of a threat to global financial stability than large dollar declines.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

Yes, but stock prices are measured in dollars.

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 3. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Here's how the stock market's fear gauge can signal whether a bubble is forming - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Stocks like Procter & Gamble and Dollar General have 'earnings power' analysts sayYour weekend brief: Stocks like Procter & Gamble and Dollar General have 'earnings power' analysts say Pro check this out SaraEisen Pro What happened to your stock price? How can you possibly help innocent victims when you can not help your own company? CNBC sucks Everyone is at home 📈
La source: CNBC - 🏆 12. / 72 Lire la suite »

Stock market crash: David Rosenberg warns bear market isn't over - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. The more money printing the more asset prices will keep going up over the long run The Great Depression had cyclical bull markets with a secular bear market. This time is no different.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »