Gold Pierces Record as Dollar Sinks; Stocks Mixed: Markets Wrap - Yahoo Canada Finance

Gold Pierces Record as Dollar Sinks; Stocks Mixed: Markets Wrap

(Bloomberg) -- Gold climbed to an all-time high and the dollar extended its slump as investors mulled simmering Sino-American tensions, the upcoming Federal Reserve meeting and a smattering of second-wave outbreaks of the coronavirus. European stocks opened lower.

The precious metal notched its biggest intraday increase since April while a gauge of the dollar sank to January 2019 levels. EasyJet Plc and Ryanair Holdings Plc led the Stoxx Europe 600 Index lower after the U.K.’s decision to quarantine travelers returning from Spain. Futures on the three main U.S. equity gauges rose modestly after the benchmarks all lost ground last week.

Asia equities advanced, with a 10% surge in Taiwan Semiconductor Manufacturing Co. leading shares in Taipei toward a record high. Treasuries edged up.

Investor concern about the global economy and expectations that the Fed’s open market committee meeting may reinforce a dovish outlook are driving the dollar and precious metals in opposite directions while supporting U.S. equities. Meanwhile, fresh outbreaks of the virus emerged from China to Spain, though cases fell in California, Arizona, Florida and New York.

“The July FOMC meeting should kick off a period from August into mid-September in which markets should price in an increasingly dovish, forward-looking Fed policy via lower real rates,” Morgan Stanley strategists including Matthew Hornbach wrote in a report. “This should benefit breakeven inflation rates, support risk assets, and weigh on the U.S. dollar.”

Elsewhere, West Texas crude oil edged lower after last week’s gain. Silver rose as investor appetite for precious metals continued. Bitcoin climbed back above $10,000.

Here are some key events coming up:

Earnings include, Apple, Amazon.com, Alphabet, Chevron, Rio Tinto, L’Oreal, Caterpillar, Samsung, Barclays and Credit Suisse.The Federal Open Market Committee holds its policy meeting on Tuesday, with an announcement due on Wednesday.U.S. second-quarter GDP is expected on Thursday.China PMI data comes Friday.

These are the main moves in markets:

Stocks

The Stoxx Europe 600 Index dipped 0.4% as of 8:17 a.m. London time.Futures on the S&P 500 Index rose 0.3%.Hong Kong’s Hang Seng Index decreased 0.3%.The MSCI Asia Pacific Index gained 0.7%.

Currencies

The Bloomberg Dollar Spot Index fell 0.7%.The euro increased 0.5% to $1.171.The British pound rose 0.2% to $1.282.The Japanese yen strengthened 0.6% to 105.47 per dollar.The South Korean Won strengthened 0.4% to 1,196.18 per dollar.

Bonds

The yield on 10-year Treasuries declined one basis point to 0.58%.Germany’s 10-year yield decreased less than one basis point to -0.45%.France’s 10-year yield was unchanged at -0.147%.Britain’s 10-year yield dipped less than one basis point to 0.14%.

Commodities

West Texas Intermediate crude fell 0.4% to $41.14 a barrel.Silver strengthened 6% to $24.13 per ounce.Gold strengthened 1.7% to $1,935.20 an ounce.

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2020-07-27 07:24:00Z
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