Stocks halted their record run, but FX markets turn focus to the EURO
Stocks halted their record run as the S&P 500 finished in the red for the first time in four days. Rollercoaster below the surface continued as the reopen and Infrastructure trade slightly underperformed. Tech and healthcare lagged while utilities rose to the top of the pack.
Elsewhere, Treasuries rallied. The dollar fell, and the euro rallied to the highest in two weeks after the International Monetary Fund upgraded its global growth forecast for the second time in three months. S&P -0.1%, NASDAQ -0.1%, RTY -0.25%.
Global stocks are treading water around all-time highs Wednesday as investors weighed the pandemic and stimulus support for the economic rebound.
The dollar halted a four-day loss and encouraged some profit-taking in gold, but sellers are finding strong hands this week as hawkish FOMC bets pare..And the EUR/USD could be the FX markets primarily beneficiary.
While Europe is lagging the US in terms of fiscal stimulus, it should nonetheless benefit from it. Vaccine rollout should also catch up, and the European recovery fund is expected to be in line in H2 this year. Suggesting the ECB is likely to be in actual tapering mode from June onward.
A gauge of Asia-Pacific equities fluctuated, as did US and European futures. As expected, on a damper credit impulse, Chinese stocks underperformed while Japan advanced. Toshiba (OTC:TOSYY) shares are poised to surge after the company received an initial buyout offer from CVC Capital Partners. Oil held above $59 a barrel. which I'm sarcastically referencing as an accomplishment given the mounting supply worries as much of vaccine optimism is in the price