© Reuters. FILE PHOTO: A man looks at an electrical board showing the Nikkei index outside a brokerage in a business district of Tokyo, Japan, on June 21, 2021. REUTERS / Kim Kyung-Hoon / Stock Photo
By Tom Arnold and Paulina Duran
LONDON / SYDNEY (Reuters) – Global equities fell below record highs on Tuesday, while anticipation of the previous Federal Reserve cut kept investors cautious, leading the US dollar to a maximum of four months against the euro.
Markets were looking ahead to U.S. inflation figures on Wednesday to see more indications of when the world’s largest economy could begin to pull the stimulus after strong job data boosted the reduced conversion.
MSCI’s global country index, which tracks the stocks of 49 countries, rose 0.1% on the day, below the record highs climbed last week.
European stocks advanced to new record highs, with a stronger 0.2%, extending gains to a seventh straight session, driven by travel and leisure companies.
MSCI’s broader Asia-Pacific stock index outside of Japan was 0.4% higher after trading much of the day in the red as concerns weighed on the spread of the Delta variant. of COVID-19.
China on Monday reported more COVID-19 infections in what appears to be its most serious resurgence of the disease since mid-2020, as some cities added mass trials to try to eliminate the infections.
Nasdaq futures totaled 0.1% and were flat.
Gold prices rebounded after hitting a four-month low on Monday, when data showed job vacancies in the United States hit a new record in June and hiring also rose.
XAU = rose 0.3% to $ 1,733.20 per ounce
This followed Friday’s non-farm payroll report which showed jobs rose 943,000 more than expected in July.
Two Fed officials said Monday that while the labor market still has room for improvement, inflation is already at a level that could meet a key test stage for the start of rate hikes. interest.
“If markets quickly decide to trade in a move at the September FOMC meeting, look for a new rise in the U.S. dollar, a jump in U.S. yields, and perhaps a hard day in the equity office said Jeffrey Halley, senior OANDA market analyst at Asia Pacific.
After strengthening on Friday and Monday, the high reached 93.02 during Asian trading hours on Tuesday, a high of 18 days.
The euro hit a new four-month low against the dollar, with the pair changing hands at $ 1.1726.
Analysts said the greenback was backed by strong yields on US bonds.
The 10-year benchmark yield, which reached its highest level since Monday, July 16, of 1.331%, lagged behind at 1.317%.
In Europe, Germany’s 10-year benchmark Bund yield was a lower tone on the day, with -0.46%, but six basis points above the six-month lows reached last week.
“Having swum from a much better view of inflation this year to a very disinflationary view up to a week or so, what we are getting now is another rotation in some of the trades of reflection,” he said. Sean Darby, of Jefferies (NYSE 🙂 strategist in Hong Kong.
“The only thing that’s different here in the last 12 to 19 months is that it’s likely to be accompanied by a stronger dollar.”
In addition to U.S. inflation figures forecast on Wednesday, investors are also watching progress on a $ 1 trillion infrastructure package yet to pass through the House.
Oil prices rose more than 1% on Tuesday, recovering some of the losses from the previous session when prices reached a three-week low. ()
oil futures were trading at $ 66.98 a barrel, up 0.5 or 0.75%. stood at $ 70.09, up 1.54%. US oil rose 2%, to $ 67.78 a barrel.
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