Stock

Shares dance round new highs as markets await the Fed

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© Reuters. FILE PHOTO: A man holding an umbrella walks in front of an electric board showing the Nikkei index at a brokerage firm in Tokyo, Japan, Feb.15, 2021. REUTERS / Kim Kyung-Hoon

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By Thyagaraju Adinarayan, Hideyuki Sano and Pete Schroeder

(Reuters) – Global equity markets tried new highs on Monday while US bond yields were near the three-month lows as concerns about rising inflation subsided and investors expected the US Federal Reserve to hold on to its dovish course this week .

The price fell 123.31 points, or 0.36 percent, while the price fell 8.03 points, or 0.19 percent, in early trading. That added 15.91 points or 0.11 percent to 14,085.34.

In Europe, the index rose 0.15% after hitting record highs, boosted by the prospect of a broadening economic recovery from COVID-19 and expectations of cautious monetary policy from central banks.

Recovery bets also pushed oil prices up to May 2019 highs as investors appear to view the above-forecast US inflation data on Thursday and rising factory prices in China as temporary or manageable. (OR)

Goldman Sachs (NYSE 🙂 economists said concerns that soaring inflation could wipe out market rallies or result in sharply higher bond yields were likely misplaced.

“The bond market continues to show a vote of confidence that the Fed is patient and going down longer. The stock market is similarly encouraged and hovering at all-time highs, ”said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte. North Carolina.

US 10-year Treasury yields rose one basis point to 1.47% after falling to a three-month low of 1.43% on Friday.

Many investors expect the Fed to repeat its cautious assessment at its two-day meeting on Tuesday.

The markets in Asia were quieter as China, Hong Kong and Australia were closed for a public holiday. rose 0.7%, while MSCI's broadest index for Asia-Pacific stocks outside of Japan fell 0.1%.

Broader markets largely shook off the G7 meeting over the weekend, which saw China scolded for human rights in its Xinjiang region, Hong Kong demanded high levels of autonomy, and called for a full and thorough investigation into the origins of the coronavirus in China.

BITCOIN BUMP

In currencies, the euro lost momentum after the European Central Bank showed no readiness to cut its stimulus last week and traded at $ 1.2109 after hitting a monthly low of $ 1.2093 on Friday. Dollar had fallen. (FRX /)

The yen remained little changed at 109.92 yen while the pound changed hands at $ 1.4108, near the lower end of its trading range last month.

held up its weekend profits when Elon Musk alerted Tesla (NASDAQ 🙂 to the possible resumption of transactions with the token. It was last purchased for $ 40,514.

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