The dollar index marks 110, reaching its highest level since 2002
The US dollar index hit 110.086 in Asian morning trade, hitting a new two-decade high.
The Japanese yen weakened further to 140.3 after hitting a 24-year low last week. The Korean won was at 1,370.87 against the dollar, a level not seen since April 2009.
CNBC Pro: This tech stock is up nearly 20% in the past year — and a pro says it has further to go
Tech stocks have had a difficult year so far, with some of the biggest names deep in the red.
But one cybersecurity company has stood out for its relative resilience, and market veteran Nancy Tengler believes the stock is just getting started.
Tengler, who is managing director and chief investment officer of Laffer Tengler Investments, said her bullishness on the firm could be interpreted as “controversial,”[ads1]; but argued that it is actually a safer bet in the technology space.
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— Katrina Bishop
Caixin Services PMI shows Chinese services activity increased in August
China’s Caixin Services Purchasing Managers’ Index for August came in at 55.0, compared with July’s print of 55.5.
The official non-manufacturing PMI for August is 52.6.
PMI readings are sequential and represent month-to-month expansion or contraction, with the 50-point mark signifying no change from the previous month.
— Abigail Of
CNBC Pro: Mohamed El-Erian reveals where to invest right now
With stock and bond values falling at the same time, investors should look to get out of “distorted markets”, according to Mohamed El-Erian, chief economic adviser to Allianz.
“There was a time when all asset prices went up — stocks and bonds — and we forgot about correlations. Why care about correlations when you’re getting paid to hold both risky assets and risk-reducing assets? It’s a lovely world,” he told CNBC’s Steve Sedgwick Friday.
“”But the first half taught us, and what we have again learned since mid-August, [is] that they can both go down at the same time.”
Investors seeking alternatives have a couple of options, says El-Erian.
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— Elliot Smith and Katrina Bishop
European markets: Here are the opening calls
European shares are expected to open cautiously higher on Wednesday with Britain’s FTSE index seen 18 points higher at 7,560, Germany’s DAX 33 points higher at 13,944, France’s CAC 40 up 18 points at 6,616 and Italy’s FTSE MIB up 42 points at 2029, according to data from IG.
Data releases include preliminary unemployment data for the eurozone for the second quarter as well as gross domestic product for the second quarter. The latest UK inflation figures for July will be released alongside provisional Dutch GDP for the second quarter.
The income comes from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.