SYDNEY (Reuters) – Asian stocks faltered on Monday due to unrest over a new coronavirus strain that closed much of the UK.
The pound fell 1.1% to $ 1.3370 after several European countries closed their borders to Britain as the country entered a tougher blockade to combat a new strain of coronavirus.
Prime Minister Boris Johnson will hold an emergency response meeting on Monday to discuss international travel and the flow of goods to and from the UK.
This combined with the lack of a Brexit agreement to reduce 1% of FTSE futures contracts, while EUROSTOXX 50 futures lose 1.5%.
The MSCI’s broadest index of Asia-Pacific equities outside of Japan fell 0.2% after hitting a record high last week. Japan’s Nikkei reversed early gains to fall 0.6% from its highest since April 1991.
In the United States, the leader of the majority of the US Republican Senate, Mitch McConnell, said that congressional leaders had reached an agreement on a $ 900 billion COVID-19 aid bill.
The news initially saw the future of the S&P 500 disappear to a loss of 0.1% as the session progressed.
BofA analysts noted a whopping $ 46.4 billion worth of shares in the past week, while cash outflows were the highest in four months. There were record flows in technology stocks and large flows to the consumer sector, healthcare, finance, real estate and value stocks.
BofA chief investment strategist Michael Hartnett said a “sell signal” was triggered for the first time since February, as cash levels fell to 4.0% in the latest Global Fund Manager survey.
“Positioning is expanding as policy support and profits are maximized,” he said in a statement. “Expectations of higher growth, inflation and lower interest rates have become a consensus, and investors are positioning themselves for a very rosy scenario of low volatility and high growth.”
A SATISFIED TRADE
Another popular trade was the short-circuiting of the US dollar, and the positioning was again extended by many measures, giving the currency a respite on Monday.
“Foreign exchange markets are awaiting the final results of a possible Brexit deal and the US fiscal package,” said Ned Rumpeltin, European head of FX strategy at TD Securities.
“However, we remain biased to allay any” good news “sold in USD on both fronts. These factors show at full prices, and the short USD transaction seems increasingly crowded. “
The dollar index rose slightly to 90,147 and surpassed last week’s low of 89,723, which was the lowest since April 2018.
The euro also returned to $ 1.2210, while the dollar was steady against the yen at 103.33.
The dollar was also backed by a Nikkei report that said Japanese Prime Minister Yoshihide Suga told Finance Ministry officials in November to make sure the dollar did not fall below 100 yen.
The general state of risk fell with gold prices by 0.8% to $ 1,895 an ounce.
Oil prices made a profit after seven consecutive weeks of gains, with travel restrictions in Europe a further blow to demand.
US crude fell $ 1.45 to $ 47.65 a barrel, while Brent crude oil futures fell $ 1.53 to $ 50.73.
Edited by Sam Holmes and Kenneth Maxwell