File photo: There is a sign outside the entrance to the London Stock Exchange in London, England. August 23, 2018.Reuters / Peter Nicholls
July 22, 2021
London (Reuters) – European stocks on Thursday are near record highs as investors bet to keep the European Central Bank stimulus fully open as long as COVID is a threat to growth I’m back.
Concerns that the delta variant of COVID-19 could seriously weigh down and dampen the economic recovery have rekindled the desire for higher-risk assets.
The STOXX index of 600 major European stocks rose 0.6% to 456.53 points, falling a surprising distance of 461.38 points, a lifetime high reached last week.
Among the most important, shares of consumer goods giant Unilever fell 4.4% after warning that soaring commodity costs would weigh on operating profit for the full year and mask a strong sales growth in the second quarter.
The investor focused on the ECB in Frankfurt.
Michael Hewson, Chief Market Analyst at CMC Markets, said:
“In light of the recent events in Western Europe, the floods, the last thing Europe needs right now is to tighten monetary policy,” Hughson said last week in Germany and Belgium, who have done more. of 180 dead. Said referring to the flood.
Italy’s borrowing costs fell to their lowest level in more than three months ahead of the ECB meeting, with results expected at 11:45 GMT, followed by a press conference with Governor Christine Lagarde at 12:30 p.m. GMT.
Investors will consider its guidance on inflation as discussions continue among Western central banks on when to curb large-scale stimuli in the era of the pandemic.
“The market has been caught in a bit of a squeeze, between concerns about rising inflation and falling growth,” said Hughson of CMC.
Charts: Inflation to ECB targets – https://fingfx.thomsonreuters.com/gfx/mkt/oakvebqagpr/CPI0101.PNG
ASIA SHARE SHINE
Asian stock markets had their best day in two months on Thursday, but growth-sensitive currencies struggled to recover, highlighting lingering questions about the recovery.
MSCI’s largest non-Japanese Asia-Pacific stock index rose 1.2%, the biggest daily gain since late May, and the market was green from Seoul to Sydney.
The Japanese market has been closed due to a public holiday.
The positive mood in Asia followed the rebound on Wall Street.
S&P 500 futures are slightly stronger, suggesting the US rally is weakening.
A study on Wednesday showed the Pfizer and AstraZeneca vaccines to be effective against variants of the delta coronavirus, but recent stock recovery or a clear catalyst for withdrawals on Friday and Monday. There was not.
Jun Bei Liu, portfolio manager, Tribeca Investment Partners, Sydney, said: vaccine.
Graphics: strong dollar – https://fingfx.thomsonreuters.com/gfx/mkt/akpezgzjlvr/Pasted%20image%201626897217870.png
In Hong Kong, HSBC Bank and Standard Chartered Bank led the rise in Asia with the lowest prices in months, raising the Hang Seng Index 1.7%. Evergrande, a heavily indebted Chinese real estate developer, jumped about 8% after saying it settled a legal dispute with its lenders.
The Australian and New Zealand dollars were crushed by the blockade. [AUD/][FRX/]
The dollar index was stable below Wednesday’s three-month peak at 93.194, remaining at 92.758, and the euro was just above its recent low of $ 1.1793. The circle of safety caused a small loss overall.
The interest rate market is inactive in Asia, with trading falling due to the Tokyo holiday and benchmark 10-year Treasury yields remaining at 1.2716%. [US/]
Crude oil prices fell after an unexpected rise in oil inventories in the United States, but remained largely after Wednesday’s sharp rise, the largest daily increase in three months. Brent crude oil futures fell 0.2% to $ 72.08 a barrel, but rose more than 4% on Wednesday. [O/R]
Gold fell 0.2% to $ 1,799 an ounce as the desire for safer assets waned.
Cryptocurrencies were strong after rebounding from lows when Tesla boss Elon Musk said he was likely to resume accepting Bitcoin payments after due diligence on power consumption.
Bitcoin costs $ 32,135 and hasn’t changed much.
(Additional report by Tom Westbrook, edited by Anna Nikolasi da Costa, Sam Holmes, Lyssa Kasorowski)