Equities worldwide mixed
On Monday the dollar declined and Treasuries halted a recent selloff as investors assessed the impact of the U.S. government’s partial shutdown. European and Asian equities were mixed.
The greenback edged lower against most major currencies as the disruption to federal services dragged into a third day. The euro climbed on optimism that German Chancellor Angela Merkel has made a potential breakthrough toward a fourth term. Traders monitored China’s appetite for a stronger currency as the yuan touched the symbolically key level of 6.4 per dollar. South Africa’s rand rose to its highest since 2015 on speculation President Jacob Zuma may be forced to leave office. U.S. stock futures fell.
Equity investors appear to have taken the latest U.S. government drama in their stride as the optimism over economic growth and profit increases that pushed many stock indexes to all-time highs lingers. Meanwhile, the next catalyst for bonds may come from commentary by policy makers after European and Japanese central bank decisions this week. Their signals that unprecedented stimulus will soon be wound back has sparked a surge in yields this month.
Elsewhere, West Texas oil edged lower, reversing earlier gains made after OPEC and Russia said output cuts will continue until the end of the year.
The Stoxx Europe 600 Index increased 0.1 percent as of 7:05 a.m. New York time to the highest in more than two years. The MSCI World Index of developed countries jumped 0.1 percent to the highest on record. The MSCI Asia Pacific Index increased 0.2 percent to the highest on record. Japan’s Nikkei 225 Stock Average advanced less than 0.05 percent. The MSCI Emerging Market Index rose 0.4 percent with its seventh consecutive advance. The U.K.’s FTSE 100 Index climbed less than 0.05 percent. Futures on the S&P 500 Index declined 0.1 percent.
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.