(Bloomberg) -- The euro strengthened to a four-month high and European bond spreads narrowed as leaders made progress in negotiating a historic stimulus package.
Italy’s 10-year bond yield spread over Germany, a key gauge of risk in the region, fell to the lowest level since March. Trading in U.S. equity futures was mixed with the S&P 500 coming off a three-week rally. European shares fluctuated as travel companies and oil producers slid. AstraZeneca Plc gained ahead of highly anticipated results from early vaccine studies. Oil extended losses toward $40 a barrel.
In Europe, leaders appeared close to reaching an agreement on a rescue package. The four governments that have been holding up negotiations are ready to agree on a key plank of the deal, two officials said. The Netherlands, Austria, Denmark and Sweden are satisfied with 390 billion euros of the fund being made available as grants with the rest coming as low-interest loans, the officials said, asking not be named discussing private conversations.
EU Holdouts Ready to Accept 390 Billion Euros in Grants for Fund
“Our base case is a deal is done by the end of the month, but I still think today is possible,” said James McCormick, the global head of desk strategy at NatWest Markets. “The euro’s broad-based rally was a big macro story last week and it clearly reflected a growing optimism around eventual passage of the recovery fund.”
While stock markets have inched higher in recent weeks, there are still plenty of worries about the health of the global economy, especially with the virus spreading unabated in parts of the U.S. In the euro area, unemployment could hit almost 10% by the end of the year as the economy slumps, according to a Bloomberg survey.
A Jobless Recovery Is Becoming a Real Risk for Europe’s Economy
Los Angeles Mayor Eric Garcetti has warned that the city is on the brink of another stay-at-home order. Hong Kong added a record 108 infections, will require civil servants to work from home and plans to mandate wearing of masks in all shared indoor areas.
”The economic dislocation of Covid-19 triggered a tremendous response by fiscal and monetary policy makers as well as central banks,” said Gene Tannuzzo, a portfolio manager at Columbia Threadneedle. “These measures helped to stabilise markets, yet we still find ourselves in an environment of continuous low growth.”
Here are some key events coming up:
Quarterly earnings gather steam, including Blackstone Group, Microsoft, Roche, Intel, Unilever, Canadian Pacific, UBS, Tokyo Steel, Daimler, Hyundai and Mattel.The EIA crude oil inventory report is due Wednesday.U.S. weekly jobless claims come on Thursday.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index dipped 0.2% as of 6:49 a.m. New York time.The Stoxx Europe 600 Index was unchanged.The MSCI Asia Pacific Index gained 0.2%.The MSCI Emerging Market Index rose 0.4%.
Currencies
The Bloomberg Dollar Spot Index dipped 0.1%.The euro rose 0.2% to $1.1456.The British pound rose 0.3% to $1.2603.The Japanese yen weakened 0.1% to 107.18 per dollar.The offshore yuan strengthened 0.1% to 6.9873 per dollar.
Bonds
The yield on 10-year Treasuries fell one basis point to 0.62%.The yield on two-year Treasuries decreased less than one basis point to 0.14%.Germany’s 10-year yield jumped one basis point to -0.44%.Britain’s 10-year yield climbed less than one basis point to 0.167%.Japan’s 10-year yield gained one basis point to 0.031%.
Commodities
West Texas Intermediate crude fell 0.9% to $40.20 a barrel.Brent crude dipped 0.8% to $42.76 a barrel.Gold was little changed at $1,810.64 an ounce.
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
https://news.google.com/__i/rss/rd/articles/CBMiTWh0dHBzOi8vY2EuZmluYW5jZS55YWhvby5jb20vbmV3cy9zdG9ja3Mtb3Blbi1taXhlZC1ldXJvLXNsaXBzLTIxMDEyMTM4OS5odG1s0gFVaHR0cHM6Ly9jYS5maW5hbmNlLnlhaG9vLmNvbS9hbXBodG1sL25ld3Mvc3RvY2tzLW9wZW4tbWl4ZWQtZXVyby1zbGlwcy0yMTAxMjEzODkuaHRtbA?oc=5
2020-07-20 10:50:00Z
52780936682936
Tidak ada komentar:
Posting Komentar