Asia shares dragged by S&P 500 higher , oil & gold jump
Warm weather is enticing much of the world to emerge from coronavirus lockdowns as centres of the outbreak from New York to Italy and Spain gradually lift restrictions that have kept millions cooped up for months.
“The economies of Europe and the U.S. likely bottomed out in April and are slowly starting to come back to life,” wrote Barclays economist Christian Keller in a note.
“However, incoming data from most economies highlight the depth of the contraction, raising risks of longer-term scarring that might undermine the recovery.”
“It does feel like we’re in the middle of a phoney war at the moment with all of us waiting to see how efficiently the various economies are able to re-open given all the social distancing that will be required,” said Jim Reid, a Deutsche Bank strategist.
There were still lots of obstacles to a rapid recovery, however, with Federal Reserve Chairman Jerome Powell saying in an interview on Sunday that a US economic recovery may stretch deep into 2021.
The most important data for the US economy now are the “medical metrics” around the coronavirus pandemic, he said.
The dollar has also been largely range-bound, with its safe-haven appeal keeping it well supported overall. Against a basket of currencies, it was last at 100.340 having drifted 0.7% higher last week.
The euro was steady at $1.0820, while the dollar was a fraction firmer on the Japanese yen at 107.13
In commodity markets, the flood of liquidity from central banks combined with record-low interest rates to help lift gold to a seven-year peak. The metal was last up 1.2% to $1,762 an ounce, with silver and palladium also on a roll.
Oil prices rose as demand picked up as countries around the world eased travel restrictions.
Brent crude futures firmed 96 cents to $33.46 a barrel, while U.S. crude rose 98 cents to $30.41.
Post a Comment