European stocks fell and the US dollar rose on Monday due to concerns that the US Federal Reserve is reluctant to consolidate its balance sheet, with investors also cautious about the rest of US President Donald Trump’s term.
3% last week, Stoxx Europe 600 SXXP,
decreased by 0.4%.
US ES00 futures,
fell and the DXY dollar,
Rose.
The bonds produce TMUBMUSD10Y,
moving in the opposite direction to prices, have taken into account concerns that the Federal Reserve will be less interested in maintaining their purchase rate. On Friday, Federal Reserve Vice President Richard Clarida said he expected the current pace of bond purchases to remain until the end of the year. Other Fed officials began talking about reducing these acquisitions later in 2021.
SX6P Utilities,
which are often called bond proxies, were on Monday the weakest sector in Europe.
Markets are also paying close attention to politics, as House Speaker Nancy Pelosi said indictments will be introduced if Trump is not removed by invoking the 25th Amendment. Vice President Mike Pence, the target of Trump’s anger, would not be interested in doing so.
“The markets open with a small oscillation on the risk axis this morning, probably investors reaching a turning point in the short term. However, it is too early to say that investors have their feet firmly planted and continue to howl like lions backed by a long vaccine track paved with US stimulus, ”said Stephen Innes, global market strategist at Axi.
From moving stocks, Signature Aviation GIS,
rose 8 percent to 438 pence after accepting a $ 4.63 billion offer from Global Infrastructure Partners, which estimates the aviation services company at 405 pence a share. Rival private equity groups Carlyle Investment Group and Blackstone separately indicated interest in the company.
JD Sports Fashion JD,
increased by 5% after stating that its pre-tax profit for the year ending 31 January will be at least GBP 400 million, compared to market expectations of GBP 295 million. The sporting goods retailer added that next year’s profit will increase between 5% and 10%.
Smith & Nephew SN,
The British manufacturer of medical devices fell by 3% after declaring that its adjusted fourth-quarter revenue fell by 7%, hurt by the COVID-19 pandemic that led to the postponement of medical procedures.