Technology restarts stocks, dollars Reuters breathes thanks

By Marc Jones

LONDON (Reuters) – Bounces on technology stocks rose in European stocks on Thursday after similar gains on Wall Street and Asia and a small dollar drop helped the 17-month high.

Thanks to the closure of U.S. markets, attention has been focused on Europe, where the rise in COVID-19 cases is increasing the chances of blockages during the Christmas shopping season.

These concerns led the European index to a three-week low on Wednesday, but rose by almost half a percent as the 1% gain in the technology sector offset the eighth straight fall in travel and leisure stocks.

“We continue to see every sale as an opportunity to buy,” said Marija Veitman, a global market strategist. State Street (NYSE 🙂 Global Markets added that corporate profits were still strong and borrowing costs were still very low.

An indicator of bullishness at the base of stock markets can be seen in the data. Year-on-year equity fund revenues have exceeded $ 1 trillion, more than the previous year’s combined flows, according to BofA strategists.

In the government bond markets that drive these borrowing costs, there was a small drop in yields in Germany after Social Democrat Olaf Scholz and former finance minister signed a three-party coalition agreement on Tuesday to replace Angela Merkel at the helm of Europe. economy.

It was the first drop in performance in three days. There have been many rises this week as traders see inflation rise as the European Central Bank joins the US Federal Reserve as they have stepped up their bids to raise interest rates next year. [GVD/EUR]

“The debate over inflation, whether temporary or not, is still there,” said Dirk Schmacher, head of European Macro Research at Natixis.

He also noted that the renewed blockade in Austria and the number of COVID-19 cases in Germany and other parts of Europe are growing rapidly.

THANK YOU QUIET

Rising markets saw relative calm after a few days of turmoil, were hit again, tensions in Russia and Ukraine rose, and the Mexican president raised concerns about the central bank’s independence by setting up a virtual unknown. [EMRG/FRX]

The lira removed initial losses from a 0.5% rise, extending Wednesday’s gains after a wild 11 days of 24% losses after President Tayyip Erdogan backed further interest rate cuts.

The Russian ruble has moved away from the lows of the past four months, as Moscow said it had not turned its back on peace talks in eastern Ukraine until it recovered from a one-year low.

Overnight in Asia, the Nasdaq launched a technological recovery [.N] It helped finish 0.7% higher and the Hong Kong technology index was able to achieve six loss sessions.

Other stock movements were quieter, however. The broadest Asia-Pacific stock index ended MSCI outside Japan after a few days of little movement. [.T][.SS]

Overall, “in terms of regional share allocation, we are seeing a rise in the U.S. dollar and that is a headwind for rising stocks,” said senior investment strategist at Fook-Hien Yap Standard Chartered (OTC). 🙂 Bank wealth management.

The dollar is approaching 115.3 yen against the Japanese currency, nearing a five-year high, setting an 18-month high against a 1.1222 dollar share against the euro. ()

Several U.S. Federal Reserve officials said they would be open in recent days to accelerate the central bank’s bond-buying program reduction, keep inflation high, and move faster to raise interest rates in the Fed’s November minutes. Show 2-3 policy meetings.

“The market puts prices on more than two hikes next year, but we think that’s too aggressive. We’re only looking for one hike next year,” Yap said. Goldman Sachs (NYSE 🙂 expects three rate hikes next year.

These expectations have boosted U.S. Treasury yields, albeit inconsistently, with the benchmark 10-year banknotes closed at 1.6427% for the Thanksgiving pause, up 1.6930% on Wednesday.

The U.S. Treasury and U.S. stock markets will resume on Friday, although to shorten the session, it means trading will be almost certain.

Meanwhile, oil prices rose after a tumultuous day where the United States said it would extract millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain to try to cool oil prices after calls. OPEC + was ignored for pumping more.

Investors had already largely valued the move, more than a week after the signs of the major players, which jumped on Wednesday. Last sold at $ 82 a barrel in London, up 6% from the weekly lows, but in a smaller fraction a day. [O/R]

It rose 0.17% to 1791 ounces.