The dollar briefly dropped to lowest since Jan. 13 on Tuesday as investors’ focus shifted to how U.S. Federal Reserve chief Jerome Powell might respond to resurgent inflation expectations, while commodity-linked currencies hovered near multi-year highs. The recent rise in inflation expectations as investors bet on a post-pandemic economic rebound and the so-called “reflation” trade .
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(Reuters) - European shares ended lower on Tuesday as high sovereign bond yields pressured heavyweight sectors such as technology, while a batch of mixed corporate earnings cast doubt over the pace of a post-COVID-19 recovery.
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February 17, 2021. REUTERS/Staff
The benchmark euro zone stock index was down 0.4%, with tech stocks leading declines for a second straight session as they retreated further from 20-year highs.
A recent spike in sovereign bond yields also weighed on stocks, as higher returns in fixed income offered investors a safer alternative to relatively riskier equities.
European shares ended lower on Tuesday as high sovereign bond yields pressured heavyweight sectors such as technology, while a batch of mixed corporate earnings cast doubt over the pace of a post-COVID-19 recovery.
<div class="at-above-post addthis tool" data-url="https://www.metro.us/dollar-stabilizes-after-powell/"></div>NEW YORK (Reuters) – The dollar was modestly higher on Tuesday afternoon after U.S. Federal Reserve chair Jerome Powell pushed back on suggestions that loose monetary policy risked unleashing inflation, while the British pound rose to fresh three-year highs. The growing likelihood that Congress will pass President Joe Biden’s $1.9 trillion stimulus plan has stoked […]<! AddThis Advanced Settings above via filter on get the excerpt ><! AddThis Advanced Settings below via filter on get the excerpt ><! AddThis Advanced Settings generic via filter on get the excerpt ><! AddThis Share Buttons above via filter on get the excerpt ><! AddThis Share Buttons below via filter on get the excerpt ><div class="at-below-post addthis tool" data-url="https://www.metro.us/dollar-stabilize
The rise in inflation expectations as investors bet on a post-pandemic economic rebound and the so-called reflation trade had lifted US government bond yields and briefly the dollar until earlier this month