World stocks muted, dollar at 6
KUALA LUMPUR, Malaysia (AP) - Asian stock markets notched modest gains Tuesday and the dollar hit a six-year high against the yen on expectations the Federal Reserve will soon end stimulus and raise interest rates. European stocks were slightly lower.
KEEPING SCORE: France's CAC 40 was down 0.1 percent at 4,471.01 and Germany's DAX shed 0.1 percent to 9,747.41. Britain's FTSE 100 was down 0.2 percent at 6,819.88 amid jitters Scotland will vote to split from the United Kingdom in a Sept. 18 independence referendum. The pound stabilized after a sharp fall Monday. Futures pointed to a weak session on Wall Street. S&P 500 futures were down 0.1 percent and Dow futures were little changed.
BREAKUP JITTERS: A possible severing of Scotland's centuries-old union with England is alarming international investors and could spell trouble for the United Kingdom, which is Europe's third largest economy. It could hit Britain's trade balance and dent its income with oil reserves possibly reallocated back to Scotland. The pound fell more than one percent Monday after a poll showed a narrow majority in favor of Scottish independence for the first time.
DOLLAR BULLS: The dollar extended its rally, hitting 106.40 yen, the highest since September 2008. Compared with other major currencies beset by bad economic data or possible further stimulus, the dollar appears the most attractive as the U.S. central bank looks to end stimulus by October and consider hiking interest rates.
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