Reuters. Investors at a Shanghai brokerage house look at a screen displaying stock information
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By Wayne Cole
SYDNEY (Reuters) – World stocks on Monday suspended record-busting month assessments as vaccine-driven economic recovery is expected next year and yet more free money from central banks is raising concerns about the near-term coronavirus epidemic.
Helping sentiment was a survey that showed China’s factory activity easily beat forecasts in November, with blue chips up .6.6% for the month.
The rush for risk has benefited oil and industrial goods while safe haven has weakened the dollar and gold.
“November will be a reliable month for equity investors who are in charge of Europe at the country / regional level,” said NAB analyst Rodrigo Catriel.
Many European seas are boasting their best months with growth of 21% in France and about 26% in Italy. The MSCI move of world stocks has risen 13% so far for November, while it has risen 11% on all-time peaks.
As of Monday, MSCI’s broader Asia-Pacific stock index outside of Japan remained stable, rising more than 11% for the month to its best performance since late 2011.
0.1 per cent strength, earning 16% for its biggest jump since 1994.
E-mini futures for the S&P 500 fell 0.2%, and Nasdaq futures strengthened 0.1%.
“Markets are buying more and there is a risk of a short-term break,” said Shane Oliver, head of investment strategy at AMP (OTC) Capital.
“However, we are now in the strongest times of the year season and investors have not completely abandoned the possibility of a very strong recovery in growth and profits next year, as the stimulus is combined with vaccines.”
Outperformers are likely to be cyclical recovery share holders, including resources, indust industrial and financial, he added.
The rise in stocks has put some competitive pressure on safe haven bonds but most of them have been taken into account by expectations of more asset purchases by central banks.
Sweden’s Riksbank surprised last week by increasing its bond-buying program, and the European Central Bank is expected to follow suit in December.
Dollars in the decline
Federal Reserve Chairman Jerome Powell testified to Congress on Tuesday amid speculation of further policy action at its next meeting in mid-December.
As a result, the U.S. The 10-year yield of is almost exactly ending in the month from where they started 0.84%, solid performance considering the stimulus in equities.
The US dollar has not been as lucky.
Robert Rainey said potential Treasury Secretary (Janet) Yellen and Fed Chair Powell could work more closely to shape and coordinate super-easy monetary policy and the massive monetary stimulus that could quickly drive post-epidemic recovery, under dollar pressure. Was. “Said Robert Rainey, head of financial market strategy at Westpac.
Against a basket currency, a 2.4% month-on-month decline to 91.771 was put on Friday to bear its lowest level in two months.
The euro has caught tailwind with the relative performance of European stocks and so far in the month it has risen 2.7% to 2. 1.1964. Breaking the September peak of September 1.2011, the 2018 top price will open at 25 1.2555.
The dollar depreciated against the Japanese yen, its own safe haven, reaching 103.89 yen in November, down 0.7%, although above the key support of 103.16.
Sterling remained at 1.3330 dollars, the sharpest gain since September, as investors negotiated a Brexit deal to extend the deadline.
One of the biggest casualties of the endangered crowd is gold, which had fallen 7. per cent so far in November, close to a five-month low of ounces.
Oil, by contrast, has benefited from the possibility of a revival of demand, if vaccines allow travel and transportation next year. [O/R]
The group of producers will decide to take some profits early on Monday before the OPEC + meeting to determine whether to increase the big output cut. Futures fell 67 cents to 5.57.51, while c1 cents fell to 1 1.15 a barrel.
