Euro slipped on political news, Asia shares track Wall Street

FILE PHOTO: An employee shows fifty-euro notes in a bank in Sarajevo, March 19, 2012. REUTERS/Dado Ruvic/File Photo
Vastavam web: The euro slipped on Monday after German Chancellor Angela Merkel won a fourth term in a weekend election, but faced leading a much less stable coalition in a fractured parliament as support for the far-right party surged.“The market reacted by selling the euro on the possibility of Merkel running into difficulties in forging a coalition. The euro, however, was already losing support from the European Central Bank’s monetary policy theme and appeared to be on its way lower,” said Daisuke Karakama, chief market economist at Mizuho Bank in Tokyo.
The euro was down 0.2 percent at $1.1934 EUR=, putting more distance between a 2-1/2-year high of $1.2092 reached on Sept. 8, when a European Central Bank policy meeting left currency bulls optimistic the ECB would begin tapering its big stimulus program.The New Zealand dollar suffered a similar setback, falling as New Zealand’s ruling National Party won the largest number votes in Saturday’s election but without a ruling majority and now faces a round of coalition building that could last days or weeks.
Japan’s Nikkei .N225 rose 0.6 percent, Australian shares climbed 0.4 percent and South Korea’s KOSPI .KS11 was flat.The S&P 500 .SPX and Nasdaq .IXIC closed slightly higher on Friday as worries about the Graham-Cassidy proposal to reform U.S. health insurance eased and investors shrugged off concerns about North Korea. Sterling was little changed at $1.3506 GBP=D3 after losing 0.6 percent on Friday.
Its peers’ troubles lifted the dollar, with its index against a basket of six major currencies up 0.1 percent at 92.274 .DXY.The greenback was up 0.4 percent at 112.455 yen JPY=, reversing losses suffered on Friday when the exchange of insults between U.S. President Donald Trump and North Korea heated up, sapping broader risk appetite.