WASHINGTON U.S. construction spending rose to a record high in November, boosted by a robust housing market amid historically low mortgage rates, which could help blunt some of the hit on the economy from raging COVID-19 infections.
U.S. Treasury yields backpedaled
from earlier gains on Monday as stock indexes tumbled on
nervousness over an election this week that will determine
control of the U.S. Senate, while traders pushed inflation
expectations over the next 10 years to their highest average
since 2018.
The benchmark 10-year yield was last up less
than a basis point at 0.9165%.
U.S. stocks dropped more than 1%
on Monday, the first trading day of the new year, pulling back
after recent gains to record highs, while the U.S. dollar was up
slightly.
British Prime Minister Boris Johnson was
poised to introduce tougher coronavirus restrictions in England
at midnight on Monday, in a new national lockdown to try to
reduce a surge in COVID-19 cases.
Aeva Inc on Monday said it had raised an
additional $200 million ahead of a planned merger that will make
it a publicly listed company, brining its total raised in the
deal to more than $560 million.
Chile's peso outpaced its peers on Monday
after economic activity was seen expanding in November, while a
gauge for emerging market currencies touched a record high,
marking a strong start to 2021 on optimism over an economic
recovery.
The MSCI's index for emerging
Health insurer Centene Corp said
on Monday it has agreed to buy Magellan Health Inc in a
$2.2 billion deal including debt, looking to build up its mental
health services as more Americans struggle with COVID-19-related
behavioral and anxiety issues.
The U.S. dollar recovered after falling to its lowest level since April
2018 on Monday, as surging coronavirus cases undermined bullish sentiment that had begun the new year
across global markets and pushed investors into riskier currencies, such as the Chinese yuan a
Control of the U.S. Senate is at
stake with Tuesday's dual runoff elections in the state of
Georgia, and the results may ripple through a stock market that
closed 2020 at record highs.
A slew of brokerages initiated coverage of
Airbnb Inc and DoorDash Inc on Monday, having
high hopes for their revenue growth and supporting eye-popping
valuations obtained by both last month in stock market
launches.
(Reuters) -European shares rallied in the first trading session of the year on Monday, as a landmark Brexit trade deal and coronavirus vaccination campaigns across the continent bolstered expectations of a strong economic rebound.
European shares rallied in the first
trading session of the year as a landmark Brexit trade deal and
coronavirus vaccine drives across the continent bolstered
expectations of a strong economic rebound.
European stocks closed lower on Thursday, ending 2020 in the red as tighter coronavirus restrictions in Britain and higher U.S. tariffs on some EU products dampened spirits on the final trading day of the year.
European stocks retreated on Thursday as investors squared positions on the last trading day of the year, while tighter coronavirus restrictions in Britain and a move by the United States to raise tariffs on some EU products dampened sentiment.
European stocks retreated on Thursday as
investors squared positions on the last trading day of the year,
while wider coronavirus lockdowns in Britain and news that the
United States had raised tariffs on some EU products dampened
sentiment.
European stocks edged higher on Wednesday
as Britain approved a COVID-19 vaccine developed by AstraZeneca
and Oxford University, while bets of more U.S. fiscal aid and
massive vaccination efforts spurred hopes of a strong global
economic recovery next year.
(Reuters) -European stocks closed at a fresh 10-month high on Tuesday, powered by a Brexit trade deal, hopes of a bigger U.S. stimulus package and a marathon COVID-19 vaccination campaign.
The Bank of Israel expects the
economy to rebound quickly in 2021 if the country's fast start
to vaccinating people against COVID-19 is maintained, the
central bank said on Monday after keeping rates unchanged.
The U.S. dollar fell to mid-2018
lows on Monday as bullish sentiment across global markets
prompted investors to buy riskier currencies such as the Chinese
yuan and the euro, despite a resurgent pandemic.
With U.S. interest rates pinned at record lows, massive U.S.
deficits and a belief that rebounding world trade will drive
non-dollar currencies higher, the dollar weakened on the first
day of trading in 2021 after falling nearly 7% last year.
The Chinese currency was the biggest beneficiary of the weak
dollar trade. The yuan rocketed to a two-and-a-half-year
high.
"The U.S. dollar slipped further through the threshold of
the new year as global risk sentiment stayed buoyant", said
Alvin Tan, an FX strategist at RBC Capital Markets.
The dollar index touched a low of 89.415, a level
last seen in mid-2018, and was down 0.3% at 89.529.
The Chinese yuan rose to 6.44 yuan per dollar after
Beijing cut the weighting of the U.S. dollar in a key currency
index basket. That could push the yuan's value higher against
its peers this year, analysts said, while Chinese factory
activity continued to accelerate in December.
The euro, which had dipped on New Year's Eve
profit-taking, rose 0.6% to $1.2294, just short of 2018 highs
with positive economic indicators backing the single currency.
IHS Markit economist Phil Smith said the latest data showed
German manufacturing continued to power on at the end of the
year.
"With the rollout of the COVID vaccines, it's hoped that the
pandemic will become less and less of a hindrance to demand and
that investment will continue to recover in the year ahead."
Also, a closely watched gauge of growth in British
manufacturing activity rose to its highest level in three years
as factories rushed to complete work before the end of the
post-Brexit transition period on Dec. 31.
Sterling abandoned most of its early gains against
the dollar, retreating below $1.37 but close to levels last seen
in early 2018.
The safe-haven yen rose 0.4% to 102.87 per dollar,
after Japanese Prime Minister Yoshihide Suga said his government
was mulling a state of emergency in Tokyo as coronavirus cases
rise.
Bitcoin had a rough ride, falling as low as
$27,734 at one point, after making dramatic gains over the new
year's break. It was last down 6.4% at $30.980.
The world's most popular cryptocurrency surged over $30,000
for the first time on Saturday, touched a record high of $34,800
a day later, as investors continued to bet the digital currency
was on its way to becoming a mainstream asset.
========================================================
Currency bid prices at 12:08PM in London (01208 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar $1.2291 $1.2218 +0.61% +0.61% +1.2301 +1.2211
Dollar/Yen 102.8950 103.2900 -0.46% -0.47% +103.3100 +102.7300
Euro/Yen 126.47 126.15 +0.25% -0.35% +126.5200 +126.1100
Dollar/Swiss 0.8798 0.8847 -0.54% -0.54% +0.8845 +0.8789
Sterling/Dollar 1.3647 1.3662 -0.10% -0.10% +1.3703 +1.3645
Dollar/Canadian 1.2694 1.2734 -0.43% -0.31% +1.2735 +1.2666
Aussie/Dollar 0.7719 0.7693 +0.34% +0.34% +0.7740 +0.7682
NZ 0.7208 0.7181 +0.40% +0.40% +0.7230 +0.7183
Dollar/Dollar
All spots
Tokyo spots
Europe spots
Volatilities
Tokyo Forex market info from BOJ
(Reporting by Julien Ponthus; editing by Lincoln Feast, Larry
King)
World stock markets hit record
highs on Monday, the first trading day of the new year, as
investors hoped the rollout of vaccines would ultimately lift a
global economy decimated by the COVID-19 pandemic.
Turkey's lira led gains across emerging
market currencies on Monday as higher-than-expected inflation
fuelled expectations of tight monetary policy, while stocks in
the developing world hit a 13-year high as investors hoped for a
swift economic recovery in 2021.
The U.S. dollar held near mid-2018
lows on Monday as bullish sentiment across global markets
prompted investors to buy riskier currencies such as the Chinese
yuan, despite a resurgent pandemic.
Low U.S. interest rates, massive U.S. budget and trade
deficits and a belief that rebounding world trade will drive
non-dollar currencies higher have set the dollar on a downward
course.
"The U.S. dollar slipped further through the threshold of the
new year as global risk sentiment stayed buoyant", said Alvin
Tan, an FX strategist at RBC Capital Markets.
The dollar index posted its first annual los9s since
2017 last year. It has fallen roughly 13% from a three-year peak
at the height of the pandemic panic in March.
It was last 0.14% weaker at 89.640 and not far above last
week's more than two-and-a-half-year low of 89.515.
Manufacturing activity expanded in Japan, South Korea and
Taiwan, according to PMI surveys, the latest indication that
manufacturers in the region continue to recover from the damage
caused by the COVID-19 pandemic last year.
The Chinese yuan rose over 0.9% to a 30-month high of
6.4693 per dollar.
Chinese factory activity continued to accelerate in
December, though the PMI missed forecasts at 53.0.
The safe-haven yen rose 0.4% to 102.90 per dollar,
and looked to test resistance at 102.55, after Japanese Prime
Minister Yoshihide Suga said his government was mulling a state
of emergency in Tokyo as coronavirus cases rise.
The softening dollar boosted commodity prices and pushed
bitcoin as well as several Asian currencies to milestone highs.
The Australian and New Zealand dollars each gained close to
0.4% to hold just below multi-year peaks.
The euro, which had dipped on New Year's Eve
profit-taking, rose 0.4% to $1.2270 while traders waited for a
fresh batch of economic indicators throughout the region.
Sterling, still boosted by Britain's trade deal with
the European Union, gained to $1.3678, levels last seen in early
2018.
Investors are now focused on a runoff election in the U.S.
state of Georgia on Tuesday that will determine control of the
Senate.
Jeffrey Halley, a market analyst at Oanda warned his clients
against sharp moves in the dollar after that election.
"A Democrat win is likely to see a sharp correction higher
by the US Dollar, exacerbated by the world being universally
short the greenback", he said. "Investors should probably wait
for the election dust to settle before committing heavily to new
dollar short positions.
Minutes of the Federal Reserve's December meeting due on
Wednesday should offer more detail on discussions about making
the Fed's forward policy guidance more explicit and the chance
of a further increase in asset buying this year.
The data calendar includes manufacturing surveys across the
globe, which will show how industry is coping with the spread of
the coronavirus, and the closely watched ISM surveys of U.S.
factories and services.
Bitcoin on Monday was off Sunday's record high of
$34,800 at $32,340. An enormous rally has carried it up 800%
since March as institutional investors seem to have turned
buyers.
========================================================
Currency bid prices at 8:15AM in London (0815 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar $1.2267 $1.2218 +0.41% +0.41% +1.2271 +1.2211
Dollar/Yen 102.9000 103.2900 -0.39% -0.39% +103.3100 +102.8600
Euro/Yen 126.22 126.15 +0.06% -0.55% +126.5200 +126.1100
Dollar/Swiss 0.8822 0.8847 -0.27% -0.27% +0.8845 +0.8818
Sterling/Dollar 1.3676 1.3662 +0.12% +0.12% +1.3702 +1.3645
Dollar/Canadian 1.2696 1.2734 -0.40% -0.27% +1.2735 +1.2686
Aussie/Dollar 0.7720 0.7693 +0.37% +0.37% +0.7734 +0.7682
NZ 0.7207 0.7181 +0.38% +0.38% +0.7217 +0.7183
Dollar/Dollar
All spots
Tokyo spots
Europe spots
Volatilities
Tokyo Forex market info from BOJ
(Reporting by Tom Westbrook; editing by Lincoln Feast, Larry
King)
China's onshore spot yuan
finished its domestic trading session at 6.4628 per
dollar on the first trading day of the year on Monday, its
strongest such close since June 15, 2018.
Investors look to have started 2021 looks much like the end
of 2020 -- stocks have resumed their ascent as traders cling to
hopes for a speedy rollout of COVID-19 vaccines even as a surge
in new cases heralds tighter restrictions and economic damage.
Currencies of emerging Asian markets began
the new year on a firm note, while most stock markets also rose
on Monday as investors put their faith in coronavirus vaccines
to spur economic recovery.
A flurry of robust manufacturing data across the region that
pointed to a stabilisation in economic activity also fuelled
risk sentiment, helping the MSCI's broadest index of
Asia-Pacific shares outside Japan hit an
all-time peak.
The greenback fell during the Asian trading session,
buoying the Taiwanese dollar 1.5%, while the Malaysian
ringgit and the South Korean won advanced
0.6% and 0.3%, respectively.
Regional markets also took heart from the Chinese yuan
surging 1% to smash past the key 6.5 per dollar mark,
with the currency's gains expected to accelerate further.
"The weaker U.S. dollar is set to be a prolonged theme in
2021," said Han Tan, market analyst at FXTM, adding that
emerging-market currencies would stay supported in that case,
with optimism over vaccine rollouts adding to gains.
Meanwhile, the rupiah firmed 1.3% to a more than
six-month high, where as Indonesian 10-year benchmark yields
were down about 17.30 basis points at 5.925%. Yields
fall when prices rise.
After concerns over the central bank's autonomy in Jakarta,
positive vaccine developments toward the end of 2020 helped the
rupiah recoup most of its losses as investors were lured by
Indonesia's high-yielding debt amid a weak dollar.
"The rupiah may continue its outperformance... the global
hunt for yields should drive more inflows into its bond markets
which would be a major supportive element for the Indonesian
currency," Tan added.
A broadly optimistic tone and a subdued dollar also lifted
regional equities, with South Korea's KOSPI touching a
record high, meanwhile Indonesia, Philippines and
Taiwan shares all firmed around 1%.
However, the heavyweight glove makers that had benefited
during the early months of the pandemic dragged the Malaysian
bourse and Thai shares slipped 0.4% as the
government mulled more restrictions amid a record rise in
coronavirus infections.
HIGHLIGHTS
** The Singapore dollar notches a near 3-year high
after Q4 GDP contracts slightly less than expected
** Top losers on Malaysia Index are glove makers
Hartalega Holdings Bhd down 13.7%, Top Glove Corp
down 10.5% & Supermax Corp down 6.7%
** In the Philippines, top index gainers are San Miguel Corp
up 4.6% and Bloomberry Resorts Corp up 2.8%
Asia stock indexes and currencies
at 0556 GMT
COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD %
Japan +0.18 +0.22 -0.85 -0.85
China +0.99 +0.99 0.66 0.66
India +0.22 +0.14 -0.11 0.15
Indonesia +1.26 +1.26 1.00 1.00
Malaysia +0.63 +0.63 -1.63 -1.63
Philippines +0.08 +0.08 0.81 0.81
S.Korea +0.31 +0.30 2.37 2.37
Singapore +0.33 +0.27 0.17 0.17
Taiwan +1.49 +1.40 1.15 1.15
Thailand +0.13 +0.20 -0.37 -0.37
(Reporting by Anushka Trivedi in Bengaluru; Editing by Shailesh
Kuber)