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Government bond yields recovered while US stock options and European equities fell on Thursday, as investors melted by a political decision maker in the world's largest economy. The dollar recovered after Wednesday's loss.
Although simpler monetary policy in the United States at first glance looks supportive of risk assets, most have already made big gains in 2019 and a handsome Fed was probably priced. At the same time, the scope of the central bank's slope has increased, and the prospects for growth may be weaker than the idea. Treasury yields had already fallen with concerns about global expansion in recent weeks – they are now the lowest levels of plumbing in more than a year.
Read more about the fallout from the Fed:
Powell aims to avoid Japan Deflation Trap with Dovish Fed TiltTraders "Rate-Cut Bets" Shift Goalposts for Fed Playing CatchupDovish Fed gives EM Bulls Another Profit as Currencies, Stock Exchanges This Can being the disaster bears of the dollar has been waiting for
Elsewhere, the pound was lowered as a pressure built on Theresa May to collect a majority for her Brexit deal. U.K The prime minister is on his way to the European Union over an extension to the March 29 deadline for the UK to leave the bloc and threaten to increase the risk of a resignation. The Norwegian krone jumped as the national central bank raised prices, while the Swiss National Bank kept interest rates on the bottom of the mountain.
In Asian currency markets, the yuan rose shortly after China's central bank set its daily fixation at most since July. New Zealand and Australian dollars got solid financial data. And the de facto central bank in Hong Kong once again bought the local dollar after the city's exchange rate fell to the weak part of its trading band against the dollar.
These are the most important movements in the markets:
Futures on the S & P 500 Index lowered 0.4 percent from 7:36 am New York time to lowest in one week with the largest decrease of two weeks. The Stoxx Europe 600 Index decreased 0.3 percent to the lowest in one week. s FTSE 100 Index jumped 0.5 percent. The MSCI Asia Pacific Index rose 0.4 percent to the highest in nearly six months. The MSCI Emerging Market Index increased 0.3 percent to the highest in more than seven months.
Bloomberg Dollar Spot Index rose 0.3 percent, the first advance for a week. Euro declined 0.2 percent to $ 1.11389, the first retreat in one week and the biggest decline in two weeks. The British pound fell 0.6 percent to $ 1.3113, the weakest for more than a week on the biggest downturn in a week. The Japanese yen rose 0.1 percent to 110.54 per dollar and hit the strongest in nearly five weeks with their fifth straight progress.
The return on 10-year government tax cases decreased two points to 2.51 percent, lowest in more than 14 months.Germany's 10-year return fell four points to 0.04 percent, the lowest in more than two years on the biggest thumb of two weeks. Britain's 10-year return was unchanged at 1.083 percent.
Gold increased 0.3 percent to $ 1.315.96 per ounce and hit the highest in more than three weeks with fifth consecutive advances. West Texas Intermediate Crude Oil fell 0.8 percent to $ 59.74 a barrel, the biggest dip of nearly two weeks.
– With the help of Adam Haigh.
To contact the reporter on this story: Samuel Potter in London at [email protected]
To contact the editors responsible for this story: Samuel Potter at [email protected], Yakob Peterseil, Todd White
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