European stocks fell and the US dollar rose on Monday, due to concerns that the US Federal Reserve does not want to continue strengthening its balance sheet, with investors also wary of the rest of the term of US President Donald Trump .
3% more last week, the Stoxx Europe 600 SXXP,
fell 0.4%.
US stock futures ES00,
fell and the DXY dollar,
pink.
The bond yields TMUBMUSD10Y,
moving in the opposite direction to prices, have picked up concerns that the Federal Reserve will be less interested in maintaining the rate of its purchases. On Friday, Federal Reserve Vice President Richard Clarida said he hoped the current pace of bond purchases would hold until the end of the year. Other Fed officials have begun talking about delaying these purchases later in 2021.
SX6P utilities,
Monday, often called bond intermediaries, were the worst performing sector in Europe
Markets are also watching the policy, as House Speaker Nancy Pelosi said indictments would be introduced if Trump is not removed by invoking the 25th Amendment. According to reports, Vice President Mike Pence, the target of Trump’s anger, is not interested in doing so.
“Markets open this morning with a small fluctuation in the risk axis, as investors may reach a turning point in the short term. However, it is too early to say that investors have their feet firmly planted and continue to roar like lions backed by a long U.S.-paved vaccine track, “said Stephen Innes, chief global market strategist at Axi.
Of the shares in motion, Signature Aviation GIS,
rose 8% to 438 pence after accepting a $ 4.63 billion offer from Global Infrastructure Partners that values the aviation services company at 405 pence per share. Rival private equity groups Carlyle Investment Group and Blackstone have separately indicated interest in the company.
JD Sports Fashion JD,
rose 5%, after saying its pre-year profit ending 31 January will be at least £ 400 million, compared to market expectations of £ 295 million. The sporting goods retailer added that next year’s profit will grow by between 5% and 10%.
Smith & Nephew SN,
the UK medical device maker fell 3% after saying fourth-quarter adjusted revenues fell 7%, hurt by the COVID-19 pandemic that led to the postponement of medical procedures.