European equities are falling with the dollar; Oil progress: markets are winding up

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(Bloomberg) — European equities fell, the dollar weakened and U.S. equity futures fluctuated as investors pondered the continued global recovery of risk assets.

The Stoxx Europe 600 index opened lower, led by lower technology stocks and 500 stocks. The dollar fell against a basket of peers, heading for the longest series of losses since 2011. Brent crude oil rose to about $43 a barrel after historic output curbs were extended. Shares rose in Asia.

This week, investors will focus on the Federal Reserve’s monetary policy meeting and whether officials are likely to commit to using their full range of tools to support the U.S. economy and securities markets during the pandemic. After a very good U.S. jobs report on Friday, markets reflect strong optimism in the economic rebound and the company’s 500-stock index is about to erase its losses for the year.

“Markets have responded positively to lower infection rates in major economies, and signs of increased consumption as countries emerge from the lockdown,” Gavekal Research analysts wrote in a weekend note.  But by currently buying valuations, investors seem to be setting prices in a perfect Keynesian recovery in the second half of the year. »

What to look at this week:

New York City will begin re-opening after recording its first day since March without virus deaths. India is beginning a gradual lifting of its national lockdown. The Netherlands and Belgium plan to open bars and restaurants. New Zealand could remove most of its remaining restrictions. ECB President Christine Lagarde attends a European Parliament hearing on Monday. Japanese Prime Minister Shinzo Abe’s government will present a second supplementary budget to parliament on Monday. Public servants are expected to leave rates above zero. The OECD publishes its economic outlook on Wednesday, a semi-annual analysis of the economic outlook of member countries, eurozone finance ministers meet on Thursday to discuss the EU’s recovery plan and the succession to the presidency of the Eurogroup. Golf PGA is holding its first tournament since the coronavirus lockdown – the Charles Schwab Challenge in Fort Worth, Texas. Spanish Football La Liga will resume.

Here are the main market movements:

Stocks

The Stoxx Europe 600 index plunged 0.7% at 0813 London time. Futures on the S-P 500 index have changed little. Germany’s DAX index plunged 0.9%. The MSCI Asia-Pacific Index rose 0.7%.

Currencies

The Bloomberg Dollar Spot Index plunged 0.2%. The euro was little changed at $1.1294. The British pound climbed 0.2% to $1.2692. The Japanese yen gained 0.1% to $109.50 to the dollar.

Obligations

The yield on 10-year Treasury bills rose two basis points to 0.91 per cent. Germany’s 10-year yield fell by less than one basis point to -0.28%. Britain’s 10-year yield fell one point to 0.344%. Australia’s 10-year yield was unchanged at 1.101%.

Products

Brent crude advanced 1.3% to $42.86 a barrel. Gold strengthened 0.6% to $1,695.09 an ounce. Iron ore jumped 5.3% to $102.65 per metric ton.

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