Due to the cautious approach of the US monetary policy sweeping the financial markets, European stock markets rose, and the US dollar maintained its recent gains.
On the basis of five consecutive months of gains, the Stoxx Europe 600 index for the entire continent rose 0.4 in early trading, while the London FTSE 100 index rose 0.7%.
Unigestion cross-asset fund manager Olivier Marciot said: “The outlook for the U.S. market is complex, so it makes sense to diversify investment to other regions.” “Europe lags behind the U.S. in terms of virus containment and economic recovery. But it’s doing better now, so it’s attracting foreign capital, and European investors are also looking inside.”
The U.S. dollar index, which measures the U.S. dollar against major currencies, was flat, remaining at the highest level since early April. The revitalized USD/JPY exchange rate hit a 15-month high.
Core government bonds were sold off, and the benchmark 10-year US Treasury bond yield rose by 0.04 percentage points to 1.48%.
These measures were released before the release of US manufacturing and employment data. If the data show that the world’s largest economy accelerates out of recovery, the Fed may begin to reduce its emergency stimulus spending.
Since mid-June, Fed policymakers have raised their forecasts for economic growth and inflation in the United States, and advanced their forecasts for economic growth and inflation in the United States, and forecasted the purchase of US$120 billion in bonds in advance. By 2023, the pandemic rate will rise by one year.
Economists surveyed by Reuters predict that data from late Thursday will show that the number of first-time jobless claims in the United States fell to 390,000 from 411,000 in the previous week. The June non-farm payrolls report, which has received much attention on Friday, is also expected to show that US employers have added nearly 700,000 new jobs, up from 559,000 in May.
On Thursday, the Institute of Supply Management’s US Manufacturing Purchasing Managers Index is expected to reach 61.2 in May and produce a strong expansionary reading of 61 in June. The index has a reading above 50. The index collates the answers of executives to questions such as new orders to distinguish expansion from contraction.
In the most recent quarter, European stocks lagged the US market, with the S&P 500 index rising 8.2%, while the Stoxx 600 index rising 5.4%.
Investors believe that the European Central Bank may maintain its emergency bond purchase plan program Longer time than the Federal Reserve.Eurozone inflation dip June was the first time in 9 months, a decrease of 1.9% from the same month last year. In contrast, in the 12 months ending in May, the overall US consumer price increase rate reached 5%.
“The real GDP of the Eurozone [gross domestic product] By 2022, it will slightly surpass the United States,” Jefferies strategist Sean Darby wrote in a research report.
“Both economies are experiencing a nominal profit boom because [companies’] The return on pricing power was much faster than expected. However, the European Central Bank will cut and tighten its policies much later than the Federal Reserve. ”
As the OPEC+ meeting began on Thursday, the global oil symbol Brent crude oil rose 1.2% to US$75.46 per barrel, and analysts predict that the group’s oil producers will continue inhibition Increase in production.