Sydney
The pound fell 0.8% to $ 1.3408 after several European countries closed their borders with 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.
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 saw the future of the S&P 500 at first, only to disappear back as the morning progressed.
The MSCI’s broadest index of Asia-Pacific equities outside of Japan escaped both sides of the apartment after hitting a record high. Japan’s Nikkei added 0.5% to its highest since April 1991.
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 again the positioning seemed exaggerated 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 $ 1.2216, while the dollar was a firmer shade on the yen at 103.45.
The dollar also received an increase from a Nikkei report, according to which Japanese Prime Minister Yoshihide Suga told Finance Ministry officials in November to make sure the dollar did not fall below 100 yen.
The break in the dollar made gold prices seem a bit off their recent gains of $ 1,883 an ounce. [GOL/]
Oil prices have been somewhat offset by earnings after earning seven consecutive weeks of gains, with travel restrictions in Europe a further blow to demand. [O/R]
US crude oil fell 79 cents to $ 48.31 a barrel, while Brent crude oil fell 70 cents to $ 51.56 a barrel.