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European stocks fell and the US dollar rose on Monday, fearing that the US Federal Reserve was keen to continue strengthening its balance sheet, with investors also wary of the rest of US President Donald Trump’s tenure.
Up 3% last week, the Stoxx Europe 600 SXXP,
fell 0.4%.
ES00 US equity futures contracts,
fell, and the dollar DXY,
Pink.
TMUBMUSD10Y bond yields,
which move in the opposite direction to prices, have resumed concerns that the Federal Reserve would be less interested in maintaining the rate of its purchases. Federal Reserve Vice Chairman Richard Clarida said on Friday he expected the current pace of bond purchases to continue through the end of the year. Other Fed officials began talking about cutting back on those purchases later in 2021.
SX6P Utilities,
which are often referred to as bond agents, were the worst performing sector in Europe on Monday.
Markets are also keeping a wary eye on politics, as House Speaker Nancy Pelosi said articles of impeachment would be introduced if Trump was not impeached citing the 25th Amendment. Vice President Mike Pence, the target of Trump’s wrath, is reportedly not interested in doing so.
“Markets open with a little wobble on the risk axis this morning as investors may be reaching a near-term inflection point. However, it is too early to tell, as investors have their feet firmly planted and continue to roar like lions backed by a long vaccine trail paved with US stimuli, ”said Stephen Innes, chief global market strategist at Axi.
Stocks in motion, Signature Aviation SIG,
rose 8% to 438 pence, after accepting a $ 4.63 billion offer from Global Infrastructure Partners that values the aviation services company at 405 pence a share. Competing private equity groups Carlyle Investment Group and Blackstone have separately indicated their interest in the company.
JD Sports Fashion JD,
rose 5%, after saying its pre-tax profit for the year ending Jan.31 would be at least £ 400million, up from £ 295million. The sporting goods retailer added that next year’s profit will increase by 5% to 10%.
Smith & Nephew SN,
the UK medical device maker, fell 3% after saying its adjusted fourth quarter revenue fell 7%, hurt by the COVID-19 pandemic causing medical procedures to be postponed.
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