European stocks reach record highs, dollar softens
US equities are higher fueled by fresh record highs in several European bourses. The French CAC index gained 0.25% overnight, and leads the G-10 YTD with a 24.3% return (vs the S&P500’s 18.7%). European countries are increasing vaccination rates, which is attracting investors as travel and re-openings accelerate. The dollar index is lower after have reached a three-week high on Wednesday. UST yields are lower. Oil is virtually unchanged, trading near $69 a barrel. US import price data – the final inflation data released this week -- came in lower than expected.
August 13, 2021
EUR/USD 1.1767 GBP/USD 1.3840 USD/CAD 1.2522 AUD/USD 0.7353 USD/JPY 110.15 USD/CNH 6.4823 USD/ILS 3.2153 USD/MXN 19.8678 USD/CHF 0.9193 USD/INR 74.24 USD/BRL 5.2706 USD/SGD 1.3568 USD/DKK 6.3191 USD/SEK 8.6670 USD/NOK 8.8111
The dollar is broadly lower, as European investors embraced a risk-on mood, driving European shares to fresh record highs. The Import Prices Index for July was lower than predicted, 0.3% vs. 0.6%, and lower than both CPI and PPI released earlier in the week. UST 10yr yields, after reaching a one-month high at 1.38% yesterday, dropped to 1.34% this morning.GBP
The British pound edged higher in-line with broadly weaker US dollar. Upbeat UK wage data showed that companies are hiring workers for the post-pandemic recovery. The FTSE 100 Index rose to its highest level since March 2020.EUR
The euro is up more than 0.25% against the dollar as shares in several eurozone countries rose to all-time highs. The aggregate eurozone trade balance unexpectedly rose strongly, reversing a declining trend well entrenched so far in 2021.CAD
The CAD moved little overnight, even after news yesterday that PM Justin Trudeau plans to call a snap election for September 20. Oil prices are also unchanged from yesterday’s close.ASIA/PACIFIC
The Chinese yuan edged higher, in-line with the broadly weaker dollar. Foreign Direct Investment YoY for July came in lower than expected, extending a downtrend in place since March.
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