Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street recovers from Friday's rout, dollar falters

Stock MarketsJun 21, 2021 05:17PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: An investor sits in front of a board showing stock information at a brokerage office in Beijing, China, December 7, 2018. REUTERS/Thomas Peter/File Photo 2/2

By Chris Prentice and Ritvik Carvalho

WASHINGTON/LONDON (Reuters) -Wall Street rebounded on Monday and global stocks rose from a four-week low as investors banked on economic growth, while the U.S. dollar sank from Friday's 10-week high, boosting oil prices.

Yields on 10-year Treasuries reversed earlier losses after sliding to a four-month low of 1.354%. The benchmark note was still trading well below its recent mid-point range of about 1.6% after traders reacted to Federal Reserve expectations for a rate hike.

Shares of banks, energy firms and other companies that tend to be sensitive to the economy's fluctuations recovered after having fallen sharply since the Fed's meeting on Wednesday, when the central bank caught investors off guard by anticipating two quarter-percentage-point rate increases in 2023.

The Dow Jones Industrial Average surged, recovering from Friday's rout as it notching its strongest session in over three months to end 1.76% higher. The S&P 500 jumped 1.40% and the Nasdaq Composite rose 0.79%. (N)

"Inflation is not running out of control and in fact we think economic growth will come in better than expected," said Monica DiCenso, global investment specialist at J.P. Morgan Private Bank.

"If so, this suggests that equity multiples could be lower than people think and therefore we shouldn’t be scared about even adding to equities at these levels both in the United States and overseas."

The pan-European STOXX 600 index rose 0.70% and MSCI's All Country World Index was up 0.72%, recovering some of Friday's losses after touching its lowest since May 24 earlier in the session.

Emerging market stocks lost 0.79%.

Earlier in the session, Asia shares were under pressure. Japan's Nikkei led the declines with an over 3% drop, dipping below 28,000 for the first time in a month. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1%.

While last week's Fed meeting took the focus, the message from G-7 leaders warranted investor attention, said Christopher Smart, chief global strategist at Barings Investment Institute.

    "The consensus at the G-7 leaders meeting (was) the world's richest economies will continue to spend, spend, spend on renewing infrastructure, on redressing inequality and on fighting climate change," Smart said.

The early debate over how the Federal Reserve could begin to withdraw some of its massive support for the economy was on display on Monday when two U.S. central bank officials discussed how the playbook used after the 2007-2009 recession may not apply this time.

The U.S. dollar index fell 0.427%, off Friday's high of 92.408, as investors weighed whether the Fed's stance will mean a pause in the greenback's bear trend.

Several Fed officials have speaking duties this week, including Chair Jerome Powell, who testifies before Congress on Tuesday. European Central Bank President Christine Lagarde speaks before the European Parliament on Monday.

"We believe there is a limit to how much more hawkish the Fed can be given its inflation projections relative to the catch-up rates range," BlackRock (NYSE:BLK) analysts said in a note.

"Our bottom line: We believe the Fed’s new outlook will not translate into significantly higher policy rates any time soon."

The euro rose 0.47%.

Sterling recovered some ground, to trade up 1% after sliding to its lowest since April 16. [GBP/]

A stronger dollar has pressured cryptocurrencies, with bitcoin falling over 8.11%, while smaller rival ether lost 13.11%.

Forecasts for Brazilian growth, inflation and interest rates in 2021 rose to new highs, a survey of economists showed on Monday, following the central bank's third rate hike last week.

In commodities, crude oil rose amid a pause in talks to end U.S. sanctions on Iranian crude and a weaker dollar. Declines in the greenback's value make dollar-traded commodities less expensive to holders of other currencies. [O/R]

Brent crude futures traded at $74.89, up 1.88% on the day, as U.S. crude rose 2.65% to $73.54.

Spot gold added 1.1% to trade at $1,782.80 an ounce, looking to snap a six-day losing streak, even as prices remained near their lowest since early May.

Copper steadied on Monday, up from its lowest level since mid-April, after moves by China to rein in commodities price rallies and the hawkish signals from the Fed. [MET/L]

Wall Street recovers from Friday's rout, dollar falters
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (19)
perplexed76 .
perplexed76 . Jun 21, 2021 11:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
data worsening every week, stock gamblers singing about economic growth
Todd Gray
Todd Gray Jun 21, 2021 8:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
when these guys talk about index futures being up, it's not the same as pork, or copper futures. they trade on vast supply and demand, and it's very hard & expensive to manipulate. index futures, on the other hand, can be traded up on ultra light volume by the Chinese, or Tehran traders. Or, a small group of American traders. I don't think that always reflects real market conditions or US sentiment. perhaps what some people want, but that's not really bonafide supply and demand driven by long term value. it's just a hype bubble. they say simultaneously the s&p is in a bubble & trading at fair value. which is true? it all seems more like market manipulation. why does interest rates being temporarily low equate to massive overvaluation of both good to zombie corporations? why do they let the system get so out of whack, or have nothing set aside for times like this so stability can be maintained. who's driving? mr. toad?
Todd Gray
Todd Gray Jun 21, 2021 7:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
imo, it seems the investment world has become little more than the movable props on the stage of a 24 hour soap drama show. I find it disturbing it's gotten that low. so few having seem to have no problem with it. experts say terrorism is defined as 3 things. destruction (social lifestyles), casualties (death of personal assets), and disruption (uncertainty & chaos). that sounds a lot like what the US stock market does to millions of US citizens on a regular basis. wasn't always that way, I read.
Eduff San
Eduff San Jun 21, 2021 11:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
WHatever the dollar moves, OIL is always going up. FACT
stranger luv
stranger luv Jun 21, 2021 11:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes, to ruin life of common people
Sandy Prima
Sandy Prima Jun 21, 2021 7:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dollar Smile Theory
William Smith
William Smith Jun 21, 2021 5:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Markets are up big in Europe and US futures are currently way up.
Todd Gray
Todd Gray Jun 21, 2021 5:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
maybe. but it's a ridiculous trade with no real spine holding it up. corruption selling plastic reopening tulips. its perverse.
Afed Afed
Afed Afed Jun 21, 2021 5:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
in FED we trust...!!!!!
CHADWICK RICHINGTON
CHADWICK RICHINGTON Jun 21, 2021 3:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Gold is the only asset to be in
William Bailey
William Bailey Jun 21, 2021 1:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Stick a fork in stocks… that goose is cooked!!!
king michael
king michael Jun 21, 2021 1:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
$ reserve has dropped below 56% in world foreign currency reserve from close tp 90% in Clinton time. Be prepared to deposit  all your asset to Euro denominated account soon or lose most values.
simone scelsa
simone scelsa Jun 21, 2021 1:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Have you seen the ECB balance sheet? Euro is no better than USD
Elmer Fudd
Elmer Fudd Jun 21, 2021 12:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Treasury yields are falling to stabilize the market. The writing is on the wall and they're making matters worse by delaying the inevitable
Irvin Mermelstein
Irvin Mermelstein Jun 21, 2021 12:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I read two weeks ago that hedge funds were hoarding cash in anticipation of rising interest rates. Seems they were right. The selling now is not panic selling, yet. Professionals are selling to take profits as the charts for the broad indices are in established downtrends. Small caps broke the positive trendline since March 2020. The 1 month chart looks awful.
Pratt Man
Pratt Man Jun 21, 2021 12:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
everything you just said is wrong
HUNG NGUYEN
HUNG NGUYEN Jun 21, 2021 12:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
any true reflection comment on mk they will block it. wasting time to post...
Tyrone Jackson
Tyrone Jackson Jun 21, 2021 12:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yes, they don’t like truth seekers here. Chào buổi sáng
William Smith
William Smith Jun 21, 2021 12:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Look at that 10 year yield crashing!!!!! Smart money is not betting on a Fed raise.
trevor hron
trevor hron Jun 21, 2021 12:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Seems to be inevitable. Things are way overhetaed in the makrets. It's a much needed time for a ciorrection. With banks trying to lower intrest rates they're  just trying to find a place to park some cash. Treasury bonds seem to be just the place.
Cali Cartel
Cali Cartel Jun 20, 2021 11:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This week hedlines “hawkish” 🖕🏻
Irvin Mermelstein
Irvin Mermelstein Jun 20, 2021 11:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Shift in market psychology.
Leon Kelly
Leon Kelly Jun 20, 2021 11:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Dang, Nikkei though... wow
William Smith
William Smith Jun 20, 2021 11:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trash headline. Nothing to do with FED. Has everything to do with China's crackdown on freedoms over the weekend and that move is reverberating across Asia and the Orient.
Chris Germain
Chris Germain Jun 20, 2021 11:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this doesn't make any sense
William Smith
William Smith Jun 20, 2021 11:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
guess your geography is lacking.
Tadas Pikčiūnas
Tadas Pikčiūnas Jun 20, 2021 11:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nonscence
Sean Livingstone
Sean Livingstone Jun 20, 2021 10:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nothing to do with what the fed says. Just too many retails chasing stocks and bought calls. It's a way to make them lose money.
Casino Crypt
CasinoCrypt Jun 20, 2021 10:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The FED has everything it needs  to buy up distressed stock. There is no real reason to panic . Its a win win for the investor.
Joel Schwartz
Joel Schwartz Jun 20, 2021 10:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The FED needs to unwind their ballooned balance sheet…
William Smith
William Smith Jun 20, 2021 10:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
that's impossible without a depression.
Joel Schwartz
Joel Schwartz Jun 20, 2021 10:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
William Smith They should have thoight of that before. I swear, their policies are written by people with zero grasp of economic cycles.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email