The dollar fell the most in two weeks, while stocks rose as traders took bullish cues from improving Chinese data and comments from Treasury Secretary Janet Yellen.
(Bloomberg) — The dollar fell the most in two weeks, while stocks rose as traders took bullish cues from improving Chinese data and comments from Treasury Secretary Janet Yellen.
The yen had the biggest move against the dollar, surging more than 1% after Bank of Japan Governor Kazuo Ueda aired the possibility of ending the developed world’s last key negative interest rate.
Meanwhile, Europe’s Stoxx 600 rose 0.5% and US futures pointed to gains on Wall Street. Tesla Inc. rallied 5% in US premarket trading on an upgrade from Morgan Stanley. Italian banks led gains among European lenders after a report that the government is weighing changes to a controversial tax on banks’ windfall profits.
Read More: Dollar’s Record Rally Falters as China, Japan Step Up Defenses
Speaking over the weekend, US Treasury Secretary Janet Yellen said she’s increasingly confident that the US will be able to contain inflation without major damage to the job market. “Every measure of inflation is on the road down,” Yellen said.
In China, there’s hints that the economy may be stabilizing after a sharp downturn. Strong credit data published Monday showed recent steps to bolster the real estate market may be starting to lift household demand for mortgages, while corporate loans also picked up.
The yuan rebounded from a 16-year low after the People’s Bank of China delivered a strong verbal warning to speculators. Policymakers also set a daily fixing that was stronger-than-expected. The benchmark CSI 300 Index rose 0.7% on Monday, snapping a four-session losing streak.
In commodity markets, copper, iron ore and other metals also got a boost from the weakness in the greenback, while improved Chinese data aided sentiment.
Key events this week
- UK jobless claims, unemployment, Tuesday
- Eurozone industrial production, Wednesday
- UK industrial production, Wednesday
- US CPI, Wednesday
- Eurozone ECB rate decision, Thursday
- Japan industrial production, Thursday
- US retail sales, PPI, business inventories, initial jobless claims, Thursday
- China property prices, retail sales, industrial production, Friday
- US industrial production, University of Michigan consumer sentiment, Empire Manufacturing index, Friday
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 rose 0.5% as of 10:27 a.m. London time
- S&P 500 futures rose 0.3%
- Nasdaq 100 futures rose 0.5%
- Futures on the Dow Jones Industrial Average rose 0.2%
- The MSCI Asia Pacific Index rose 0.5%
- The MSCI Emerging Markets Index rose 0.2%
Currencies
- The Bloomberg Dollar Spot Index fell 0.5%
- The euro rose 0.3% to $1.0727
- The Japanese yen rose 0.9% to 146.47 per dollar
- The offshore yuan rose 0.8% to 7.3071 per dollar
- The British pound rose 0.5% to $1.2525
Cryptocurrencies
- Bitcoin fell 0.5% to $25,701.63
- Ether fell 1.6% to $1,593.26
Bonds
- The yield on 10-year Treasuries advanced two basis points to 4.28%
- Germany’s 10-year yield advanced one basis point to 2.62%
- Britain’s 10-year yield advanced four basis points to 4.46%
Commodities
- Brent crude was little changed
- Spot gold rose 0.4% to $1,926.52 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Brett Miller and Tania Chen.
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