Shares gain by improved sentiment, crude oil $ 120

  • Countdown to Central Bank Meetings
  • Receives Euro ahead of ECB meeting on Thursday
  • The US CPI is testing the thinking of the central bank hike on Friday
  • Oil companies have raised prices after Saudi Arabia

NEW YORK, June 6 (Reuters) – US stocks rose on Monday on gains in Asia and Europe on signs of easing Chinese controls, and investors were expecting interest rates to rise in the coming days despite crude oil reaching $ 120. A barrel.

The dollar rose against the euro ahead of the European Central Bank’s policy meeting on Thursday, but the commodity currencies were weak against the Canadian, Australian and New Zealand dollars – as risk appetite increased.

Sterling rose ahead of a vote of confidence in Prime Minister Boris Johnson after his leadership was questioned by fellow Conservative lawmakers in what became known as the Partigate scandal. read more

Sign up now for unlimited free access to Reuters.com

Voting ends at 8pm local time (1900 GMT) and will be announced later.

Mark Chandler, chief market strategist at Bannockburn Global Forex, said the Wall Street Journal report that Chinese regulators were completing studies on right-hailing company DT Global Inc., as well as easing domestic covet barriers.

“You continue to keep the world’s second largest economy open,” he said. “Didi will be available again in mobile app stores and it looks like Beijing has opened public transport.”

Didi shares rose 37.3% in the journal report, and the news helped Hong Kong’s Hong Cheng technical index close 4.6%. read more .

The comments by US Secretary of Commerce Gina Raimondo also helped to create the impression that President Joe Biden had asked his delegation to look into the possibility of raising certain tariffs on Chinese imports. read more

Chandler said people are no longer speculating that the Federal Reserve may raise interest rates by 75 basis points and may back down slightly from the 50 basis points increase in September, which has also raised sentiment.

Major US stock indices rose, as did Britain’s major stock markets (.FTSE)Germany (.GDAXI)France (.fchi)Italy (.FTMIB) And Spain (.IBEX)All will be covered by 1% or more.

Pan-European STOXX 600 Index (.STOXX) 0.92% higher and the MSCI level of stocks worldwide (.MIWD00000PUS) Received 0.31%.

On Wall Street, the Dow Jones Industrial Average (.DJI) Fell 0.08% after a brief decline. S&P 500 (.SPX) 0.20% and received Nasdaq compound (.IXIC) 0.25% added. Growth stocks (.IGX) 0.3% higher or more than double the 0.1% upfront on value stocks.

As the market prepares to sell $ 96 billion in debt this week, US Treasury yields are expected to rise and Friday’s inflation is expected to continue to heat up.

The Consumer Price Index (CPI) is expected to rise 0.7% last month, up from 0.3% in April and 8.3% year-on-year, according to an average estimate by economists conducted by Reuters.

Three U.S. loan auctions are likely to boost yields this week as banks and investors prepare to absorb the issue.

Yields on the 10-year treasury rose 7.9 basis points to 3.034%, the first time in three weeks that a benchmark yield has risen to 3%.

At an ECB meeting on Thursday, President Christine Lagarde is expected to confirm the end of bond purchases this month and the first rate hike in July, although the arbitral tribunal has not decided whether some investment banks will be 25 or 50 bps. Increased their expectations. read more

Money markets are set for a 130 bps rate hike by the end of the year, and 50 bps moves in a single session will be fully priced by October.

The high numbers will only add to expectations that the central bank will tighten aggressively next week, with markets already set a half-point increase in June and July and pricing to nearly 200 basis points (pps) by the end of the year.

The dollar was up 0.313% and the euro was down 0.29% at $ 1.0688. The yen was down 0.82% at 131.96 against the dollar.

Oil prices remained largely unchanged as Saudi Arabia raised crude oil prices in July, but amid doubts that a higher production target for OPEC + manufacturers would facilitate tight supply.

US crude was down 37 cents at $ 118.50 a barrel and Brent was down 21 cents at $ 119.51.

Gold prices fell, the dollar soared and pressure from treasury yields.

US gold futures fell 0.4% to $ 1,843.70 an ounce.

US CBI
Sign up now for unlimited free access to Reuters.com

Herbert Lash Report in New York, Additional Report by Hu Jones in London Editing by John Stone Street and Matthew Lewis

Our standards: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published.