* Asian Stock Markets: tmsnrt.rs/2zpUAr4
* Euro almost higher since late 2018 when dollar sinks
* Gold nears record peak amid COVID uncertainty
* Asia shares rally breaks over Sino-US tensions
By Wayne Cole
SYDNEY, Jul 24 (Reuters) – Financial markets greeted a series of milestones on Friday as the euro peaked at 21 months against a conflicting dollar, while Asian stocks halted below a six-month high. and gold approached its all-time high.
For once, currencies have dominated trade, as an agreement on a European Union recovery plan brought the euro to its highest level since late 2018. The single currency held last position at $ 1.1616 after having risen 1.7% during the week so far.
That was taken as a signal to sell the dollar, which fell 1.4% on the week against a basket of coins at 94,612 and headed for its fifth consecutive weekly loss.
That led to the March depression of 94,650 reaching depths not visited since late 2018.
“The bearish case for the USD continues to sharpen with a break from the lows of March 94.65 that is likely to mark the start of the next stage,” said Westpac analyst Richard Franulovich.
“Europe has reached an important milestone in its fiscal arrangements, the Recovery Fund is equivalent to a European Treasury that will finance EU spending through capital market loans.”
He noted that the dollar faced a major hurdle next week when a Federal Reserve policy meeting was likely to take a very moderate trend as the spread of the coronavirus threatened recovery.
In equity markets, MSCI’s broader Asia-Pacific index of stocks outside Japan declined 0.2%, but was still up 1.8% for the week and almost its highest level since mid-January .
Tokyo was closed for vacation, but Nikkei futures were trading a firmer fraction. Chinese blue chips fell 1.1% when Beijing promised to retaliate against a US order to close one of its consulates.
E-Mini futures for the S&P 500 increased 0.27%,
The market’s stubborn optimism about the economic recovery had been somewhat questioned by data showing that the number of Americans applying for unemployment benefits unexpectedly increased last week for the first time in nearly four months.
Analysts said there were some technical reasons for the surprise, but noted that claims were still more than double their worst weekly levels seen during the global financial crisis.
It came as US lawmakers struggled to agree on a new round of stimulus measures before the desperately needed unemployment benefits expire.
All of which was enough for the Dow to end Thursday with a 1.31% drop, while the S&P 500 lost 1.23% and the Nasdaq 2.29%.
The high-flying tech sector lost some altitude after a tech watchdog group reported that Apple Inc is facing consumer protection investigations in several states.
“In a larger picture, this news probably represents just a foretaste of what is likely to come after the November US election through an intensification of ‘Big Tech’ antitrust / antitrust investigations, including Google and Facebook, as well as The EU “orchestrated efforts for a new digital tax regime for global tech giants,” said Ray Attrill, chief strategy officer for FX at NAB.
BRIGHT GOLD
In bond markets, the ocean of liquidity provided by global central banks keeps prices up, so 10-year US paper yields closed their lowest since mid-April at 0.5774% and the entire curve Performance flattened.
The combination of super loose money and negative real bond yields has polished the appeal of gold, which pays no return but is limited by supply.
The precious metal last had a duration of $ 1,1886 an ounce, having risen 4.2% so far this week to its highest level since September 2011. That placed it at a surprising distance from the all-time high of $ 1,920.
Analysts at RBC Capital Markets noted that holdings of gold-backed exchange-traded products had already reached record highs.
“COVID-19’s level of uncertainty, low and negative real and nominal rates, politics and geopolitics have driven gold prices considerably higher, and have driven allocations among investors more and more,” they said in a note.
Oil prices were ending the week without hitting a five-month high as concerns about global demand offset a weaker US dollar.
Brent crude oil futures rose 11 cents to $ 43.42 a barrel, while US crude gained 11 cents to $ 41.18.
Editing by Shri Navaratnam
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