© Reuters.File picture: The screen shows the Nikkei average stock price and stock index outside the Tokyo Stock Exchange
Reuters London (Reuters)-European stock markets opened poorly. The U.S. dollar rose slightly on Wednesday and fell from a 10-month high, thanks to the support of policymakers against the Fed’s reduction in support.
After the Asian stock market rose slightly, the European stock market opened down and then rose slightly. At 091
The MSCI Global Equity Index, which tracks stocks in 49 countries/regions, rose 0.2% to a record high, while MSCI’s major European indexes also rose by a similar amount.
Although four cities are under lockdown, China still recorded the largest daily increase in COVID-19 cases in more than five months. The Dutch government said it would extend the lockdown measures on Tuesday.
Investors are paying close attention to discussions about the gradual reduction that the Federal Reserve may ease monetary stimulus measures.
Several decision makers in the Federal Reserve, including Loretta Mester, Esther George, James Bullard and Eric Rosengren (Eric Rosengren) Rosengren), both expressed opposition to the Fed’s idea of reducing its asset purchase plan in the near future.
These comments, coupled with the popular auction of 10-year Treasury bonds, caused the yield on the 10-year Treasury bond to fall, breaking away from the 10-month high of 1.187% set in the previous trading day.
At 0919 GMT, the benchmark rate of return was 1.1189%.
Due to expectations of large-scale fiscal stimulus measures after the New Democratic Party came to power, the yield curve was the steepest since May 2017, narrowing to 96.8 basis points.
UBS strategists wrote in a report to clients: “We believe that with the increase in vaccine launches, the possibility of fiscal stimulus measures and the normalization of economic activities, it is proved that the slight increase in US Treasury yields is reasonable.”
They said: “In recognition of this, we have raised the forecast for the U.S. 10-year and 30-year U.S. Treasury bond yields by 0.1 percentage points this year, reaching 1.0% and 1.7% respectively by the end of December.” The rate of increase in yields is far greater. This is because central banks maintain loose monetary policies, and the Federal Reserve has expressed tolerance for higher inflation.
In view of the recent increase in yields, we will pay close attention to the US December inflation data released at 1330 GMT.
The U.S. dollar recently broke the downward trend with a three-day rally, and then resumed its decline on Tuesday. The trend was stable overnight, but it rebounded in London morning trading on Wednesday, questioning whether its rebound is over.
At 0920 GMT, compared to a basket of currencies, it rose 0.1% to 90.136.
Marshall Gittler, head of investment research at BDSwiss Group, said that at least five Republicans have joined the Democratic Party to impeach President Donald Trump as a storm of the US Capitol. “Premium”, to further depreciate the currency.”
In Europe, government bond yields have fallen. Due to political uncertainty, the Italian bond sold on Tuesday lags behind Germany.
November industrial production data in the Eurozone will be released at 1000 GMT.
At 0920 GMT, the exchange rate of the euro against the dollar fell by about 0.2% to $1.21875. Riskier currencies, such as the Australian dollar and the New Zealand dollar, also fell as the dollar rose slightly.
It rose slightly, but it was still US$34,999, down about 17% from the all-time high of US$42,000 set last Friday.
Oil prices rose for the seventh consecutive trading day. West Texas Intermediate oil prices in the United States all hit their highest levels since February. Previous industry data showed that inventories fell more than expected, and investors got rid of the impact of the pandemic.