It was a mixed picture of European stocks, as investors digested the weakening of the dollar and a protectionist push by the US. which helped boost the decline of Asian stocks. The dollar fell again, and most commodities won.
Media and travel companies dragged the Stoxx Europe 600 Index after MSCI Asia Pacific recorded losses before. Japanese stocks fell because the yen traded at the strongest level since September; It is one of the main currencies at high levels thanks to the fall of the dollar. The euro rose before the European Central Bank's first policy decision of 2018, and after the data showed an improvement in business confidence in Germany. The MSCI Emerging Markets Currency index hit the strongest in the record.
The weakness of the dollar is also driving raw materials. The Bloomberg commodity index is at its highest level since October 2015, and gold trades at the strongest in more than a year.
The endorsement of Treasury Secretary Steven Mnuchin of a weaker dollar as an aid to trade increased the pressure on a dollar that has been in decline for much of last year, although White House press secretary Sarah Sanders softens her comments later. Now the eyes turn to the ECB, where traders will look for new clues about their appetite for the pullback stimulus, and the thoughts of their officials about a strengthening currency.
Investors are also increasingly concerned about the future of world trade as President Donald Trump pushes his protectionist agenda. The Secretary of Commerce, Wilbur Ross, suggested in Davos that the United States could enact more taxes.
On the other hand, the Brazilian real strengthened in eight months and the MSCI Emerging Markets index rose for the tenth day.
Users of the terminal can read more in our markets blog.
Here's what we should watch this week:
- The profit season is in full swing: Intel, LVMH Moet Hennessy Louis Vuitton, Starbucks and Hyundai Motor all come this week.
- Barring any last-minute changes in Washington, Trump will join world leaders and senior executives in Davos for the annual World Economic Forum.
- The European Central Bank announces its decision on rates on Thursday.
- The House of Lords in the United Kingdom is considering the Brexit project of Prime Minister Theresa May this week.
These are the main movements in the markets:
- The Stoxx Europe 600 Index decreased 0.1 percent at 9:32 a.m. London time, the lowest in a week.
- The MSCI All-Country World index was down less than 0.05 percent, the first retracement in a week.
- The FTSE 100 index in the United Kingdom rose 0.1 percent.
- The MSCI Asia Pacific Index decreased 0.4%, the first decline in a week.
- The Bloomberg Dollar Spot Index decreased 0.2% to its lowest value in more than three years.
- The euro gained 0.1% to $ 1.2421, the strongest in more than three years.
- The British pound rose 0.1 percent to $ 1.4258, the strongest in 19 months.
- The Japanese yen increased 0.2 percent to 109.05 per dollar, the strongest in almost 20 weeks.
- South Africa rand declined 0.4 percent to 11.9007 per dollar, the biggest decline in more than two weeks.
- The yield on 10-year Treasury bonds declined one basis point to 2.64 percent.
- Germany's 10-year yield decreased less than a base point to 0.59 percent.
- Britain of 10 years The product fell less than one basis point to 1,404 percent.
- Gold gained 0.1 percent to $ 1,359.35 an ounce, reaching its highest level in almost 18 months with its sixth consecutive advance.
- Intermediate oil from West Texas rose 0.7 percent to $ 66.06 a barrel, the highest in more than two years.
- LME copper rose 0.1 percent to $ 7,157.50 per metric ton, the highest in more than a week.
– With the assistance of Samuel Potter, Luke Kawa, Kailey Leinz, Randall Jensen and Cormac Mullen