Reuters. File photo: An investor puts his hand on the back of his head in front of an electronic board showing stock information at Hefei’s brokerage house.
By Wayne Cole
SYDNEY (Reuters) – Asian stocks traded lower on Monday as investors cautiously welcomed the news of a deal on the long-awaited US stimulus bill, although “difficult” Brexit talks dragged down any deal.
Sterling fell 0.8% to 1.3408 dollars after several European countries closed their borders to the UK as they entered a tight lockdown to combat the country’s new strain of coronavirus.
Prime Minister Boris Johnson will chair an emergency response meeting on Monday to discuss international travel and the flow of fares in and out of Britain.
In the United States, Republican U.S. Senate Majority Leader Mitch McConnell said the nearly 900 900 billion Covid-19 relief bill has been agreed by congressional leaders.
The news first saw futures for a rebound, fading back into the flat as the morning progressed.
Extensive MSCI indices for Asia-Pacific stocks outside of Japan hit record highs on both sides of the flat. Its highest level since April 1991 was 0.5%.
Analysts at Bofa noted that મોટા 46.4 billion had flowed into equities in the past week, with cash outflows the largest in four months. Tech stocks had record flows and consumer sector, healthcare, financial, real estate and value stocks had large flows.
Michael Harnett, Bofa’s chief investment strategist, said the “sell signal” was the first since February, when the amount of cash fell to%. %% in a recent Global Fund Manager survey.
“Positioning is expanding further with increasing policing support and profits,” he said in a note. “Growth expectations for higher growth, inflation and lower interest rates have become consensus and investors are in a position for a very bright scenario of low volatility and high growth.”
A crossed trade
Another popular trade is shortening the US dollar and again the situation was moving several steps further, giving the currency some respite on Monday.
“FX markets are waiting for a possible Brexit deal and the final outcome of the US monetary package,” said Ned Rampaltin, Europe’s head of FX strategy at TD Securities.
“We remain biased on both fronts to boost any ‘good news’ knee-dollar sales, although these factors seem to be at full price and short dollar trading appears to be increasingly crowded.”
The edge rose slightly to 90.147 and away from last week’s tumble of 89.723, which was the lowest since April 2018.
The euro similarly bounced back to 21 1.2216, while the dollar was shaded at 103.45 on the yen.
The Nikkei also received a lift in the Nikkei report that Japanese Prime Minister Yoshihide Suga told finance ministry officials in November to make sure the dollar did not fall below 100 yen.
The recent rise in gold prices has pushed the dollar to 1,883 dollars, as the dollar has stopped declining.
The gains came after seven consecutive weeks of gains in oil prices, hitting demand further with a travel ban in Europe.
79 cents .3 $ .. 31 dollars per barrel, while futures fell 70 cents to close at .51..56 dollars.
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