image

Stocks Cheer Prospects for Low Rates, Oil Rides Pipeline Outage Higher

Australian stocks hit their highest in more than a year, boosted by gains in miners, but shares in China fell 0.74%. Japanese shares gained 0.53%.

Euro Stoxx 50 futures were up 0.42%, German DAX futures were up 0.32%, and FTSE futures rose 0.37%, pointing to a strong start to the European session.

U.S. nonfarm payrolls data on Friday showed jobs growth unexpectedly slowed in April, which gave equities a lift but put downward pressure on the dollar and U.S. Treasury yields.

Oil and gasoline futures extended gains after a cyber attack shut down a U.S. pipeline operator that provides nearly half of the U.S. east coast’s fuel supply.

“It certainly pushes back the timetable for Fed tapering, perhaps to December from the prior expectations of the Jackson Hole Symposium in late August,” Chris Weston, head of research at broker Pepperstone in Melbourne, wrote in a memo.

“A softer payrolls is good for the reflation trade; the dollar weakened across the FX spectrum. We’ve also seen a solid bid in equity indices and futures are up.”

On Friday the Dow Jones Industrial Average and the S&P 500 rose to record closing highs after disappointing data on the U.S. jobs market eased concerns about a spike in consumer prices.

In recent weeks, some investors had been placing bets that a robust U.S. economic recovery from the coronavirus pandemic would force the Federal Reserve to raise interest rates earlier than the central bank has outlined.

However, the weak nonfarm payrolls report caused a rapid reversal in some of these trades, which rippled through stocks, bonds, and major currencies.

The focus now shifts to U.S. consumer price data due on Wednesday, which will help investors determine whether they need to scale back their inflation expectations even further.

MSCI’s broadest index of global stock markets hit a record high on expectations that low rates will continue to spur lending and economic growth.

The dollar index against a basket of six major currencies edged up to 90.237 but was still near its weakest since Feb. 25.

The British pound jumped to the highest in more than two months against the greenback, but worries about Scottish independence could curb sterling’s gains, traders said.

China’s onshore spot yuan strengthened to 6.4265 per dollar, the highest since Jan. 29.

In the cryptocurrency market, ether rose to a record above $4,000. Bigger rival bitcoin rose to $58,920.

The yield on benchmark 10-year Treasury notes steadied at 1.5931% in Asia on Monday after having plunged to a two-month low of 1.4690% on Friday.

U.S. crude ticked up 0.51% to $65.23 a barrel. Brent crude rose to 0.53% to $68.64 per barrel in Asian trading as the disruption to U.S. supplies rattled energy markets. [O/R]

Gasoline futures on the New York Mercantile Exchange rose 1.43% to $2.1574 a gallon, near a three-year high.

The White House is working closely with top U.S. fuel pipeline operator Colonial Pipeline on Sunday to help it recover from a ransomware attack that forced the company to shut its main fuel lines.

“The major takeaway is the bad guys are very adept at finding new ways to penetrate infrastructure,” Andrew Lipow, president of Lipow Oil Associates told Reuters. “Infrastructure has not developed defences that can offset all the different ways that malware can infect one’s system.”

(Reporting by Stanley White; Editing by Lincoln Feast.)


Source link

0 0 voter
Article Rating

S’abonner
Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site Union-trader.com peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site Union-trader.com décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.