European equities fell and the US dollar rose on Monday, fearing that the U.S. Federal Reserve is not eager to maintain its balance sheet, with investors also concerned about the rest of U.S. President Donald Trump’s term.
Up to 3% last week, Stoxx Europe 600 SXXP,
fell 0.4%.
US stock futures ES00,
fell, and the DXY dollar,
rose.
The title yields TMUBMUSD10Y,
who move in the opposite direction to prices, have raised concerns that the Federal Reserve will be less interested in maintaining the rate of their purchases. On Friday, Federal Reserve Vice President Richard Clarida said he expected the current pace of bond purchases to remain until the end of the year. Other Fed officials began talking about reducing these purchases in late 2021.
SX6P Utilities,
which are often called securities attorneys, were the worst performing sector in Europe on Monday.
Markets are also eyeing politics, as House Speaker Nancy Pelosi said that impeachment articles would be introduced if Trump were not removed by invoking the 25th Amendment. Vice President Mike Pence, the target of Trump’s ire, is not interested in doing so.
“Markets are opening with a slight fluctuation in the risk axis this morning, as perhaps investors are reaching a short-term tipping point. However, it is too early to say, as investors have their feet firmly planted and continue to roar like lions backed by a long vaccination trail paved with US stimulus, ”said Stephen Innes, chief global market strategist from Axi.
Stock moving, Signature Aviation SIG,
rose 8% to 438 pence after accepting a $ 4.63 billion offer from Global Infrastructure Partners, which 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-tax profit for the year ended January 31 will be at least £ 400 million, compared with market expectations of £ 295 million. The sporting goods retailer added that next year’s profit will grow between 5% and 10%.
Smith & Nephew SN,
the UK medical device maker fell 3% after saying its fourth quarter adjusted revenue fell 7%, hampered by the pandemic COVID-19 that led to the postponement of medical procedures.