Euro strengthens while stocks trade stable
On Tuesday Europe’s common currency strengthened and the dollar fell back in a lackluster trading session on Tuesday. European stocks erased a drop to trade sideways, while gold climbed with oil and bonds were mixed.
The euro joined most G-10 peers in strengthening against the greenback, which slipped alongside both Treasuries and U.S. stock futures. The Stoxx Europe 600 Index was directionless as benchmark gauges across the region were mixed, though moves were not large. West Texas Intermediate crude started on the back foot but reversed during European hours.
Markets appear to be in a holding pattern, with investors seeking catalysts amid the summer slowdown. The focal point of this week looks set to be Friday’s U.S. inflation data, which may be key to the interest-rate outlook of the world’s biggest economy. Two Federal Reserve officials said on Monday that soft inflation was a problem, but played down the risk of market disruption when the central bank starts shrinking its balance sheet.
The Stoxx Europe 600 Index dipped 0.1 percent as of 6:47 a.m. in New York. The MSCI All-Country World Index gained 0.1 percent to the highest on record. The U.K.’s FTSE 100 Index sank 0.1 percent. Germany’s DAX Index rose less than 0.05 percent. Futures on the S&P 500 Index decreased 0.1 percent.
Gold gained 0.5 percent to $1,263.86 an ounce, the largest rise in more than a week. West Texas Intermediate crude rose 0.2 percent to $49.47 a barrel.
Japan’s Topix index fell 0.2 percent at the close with Soft Bank Group Co. declining even after profit topped estimates. Sony Corp. gained after it was added to the JPX-Nikkei Index 400. Australia’s S&P/ASX 200 Index lost 0.5 percent and South Korea’s Kospi index dropped 0.2 percent. The Japanese yen jumped 0.2 percent to 110.55 per dollar.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.