Wed. Jan 19th, 2022


© Reuters. FILE PHOTO: People are reflected in an electrical panel showing the Nikkei index and its graph outside a brokerage in a shopping district in Tokyo, Japan, on June 21, 2021. REUTERS / Kim Kyung-Hoon


By Elizabeth Howcroft

LONDON (Reuters) – European stocks opened higher and risk appetite in world markets rose on Monday, but concerns about the COVID-19 Delta variant hampering economic growth persisted as investors weighed in on the possible timetable. to reduce the monetary stimulus.

After concern about slow growth dragged on stocks and oil prices fell last week, they rose in Asian trade.

The MSCI global equity index, which tracks shares in 50 countries, rose 0.4% to 0803 GMT, recovering from the biggest weekly drop since June last week. . The one in Europe rose by 0.3%.

Oil prices rose, breaking the seven-day streak of losses. rose 2.1% and West Texas Intermediate Crude in the U.S. rose 2%, after both marked the week with the biggest loss in more than nine months last week as markets prepared a weakened fuel demand due to an increase in virus infections.

In foreign exchange, it stood at 92,264, down 0.2% on the day, compared to a nine-month high of 92,734 on Friday.

Chart: USD:

“After the corrections we’ve seen over the last week, it’s really a rebound,” said Marco Willner, head of investment strategy at NNIP.

“People are looking at Jackson Hole, people are also looking at the Delta variant, so the factors haven’t changed: it’s a technical rebound.”

The spread of the Delta variant has the potential to disrupt the timing of plans by the U.S. Federal Reserve to reduce its bond purchase program.

Dallas Federal Reserve Chairman Robert Kaplan, one of the strongest supporters of the U.S. central bank to begin reducing support for the economy, said Friday that he may need to adjust that view if the variant Coronavirus Delta slows economic growth materially.

Markets will be watching Fed Chairman Jerome Powell’s speech at Jackson Hole this week, though investors looking for clear indications of volume cuts may be disappointed.

“One of the key questions will be when the volume reduction will start. I don’t think it’s an agreement that Powell will comment on this week: he can wait until September, maybe until November, () announcement around this “Willner of NNIP said.

According to PMI surveys, activity in the German manufacturing and services sectors expanded in August, although the growth rate slowed slightly.

Germany’s benchmark 10-year yield stood at -0.472%, while the U.S. 10-year yield stood at 1.2717%, due to a lack of direction over the past week.

Expectations that the US Fed will facilitate monetary stimulus before the European Central Bank have helped the dollar strengthen against the euro in recent weeks, with the euro hitting a nine-month low on Friday $ 1,1664. On Monday it rose 0.2%, to $ 1.1724, at 0809 GMT.

Elsewhere, bitcoin rose above $ 50,000 during Asian trading hours and rose 1.7% on the day, to around $ 50,154. The cryptocurrency hit an all-time high of 64,895.22 in April, fell sharply in May and has been gradually recovering since mid-July.

For the Reuters Live Markets blog on European and UK stock markets, click: [LIVE/]

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