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FOREX-Dollar nurses losses as mean reversion trade widens Reuters 3 hrs ago
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By Saikat Chatterjee
LONDON, April 14 (Reuters) - The dollar nursed losses near a one-month low on Wednesday as strong demand at a U.S. bond auction fuelled a widespread drop in Treasury yields, reducing the interest rate advantage the greenback held over other major currencies.
While rate differentials between U.S. and German benchmark 10-year yields have narrowed slightly to 193 bps from more than 200 bps at the start of the month, they remain considerably higher than 150 bps seen at the start of the year.
April has been a month of mean reversion trades among major currencies with the yen and the euro recovering most of their sharp losses sustained in March. Even commodity currencies including the Aussie and the kiwi dollar have bounced strongly.
GLOBAL MARKETS-World stocks post record highs as bond yields ease Reuters 3 hrs ago European stocks up 0.1% Bond yields retreat to three-week lows Bitcoin hits record high, dollar weakens
By Tom Arnold and Kevin Buckland
LONDON/TOKYO, April 14 (Reuters) - Global stock markets pushed to record highs on Wednesday as bond yields eased, after data showed U.S. inflation was not rising too fast as the economy re-opens.
With fears receding for now that a strong inflation reading might endanger the Federal Reserve s accommodative stance, European shares opened 0.1% higher.
Gains were capped after Johnson & Johnson said it would delay rolling out its COVID-19 vaccine to Europe, after U.S. health agencies recommended pausing its use in the country after six women developed rare blood clots.
The Labor Department reported Tuesday that the consumer price index, a core measure of inflation, rose 0.6% in March on the previous month. However, consumer prices jumped 2.6% on the same period last year, the highest year-on-year gain since August 2018 and much higher than the 1.7% growth reported in February.
Yields fell following the release of the data, despite market concerns over inflation having driven rates higher over the last few months. Yields were also lower following a strong auction of 30-year bonds, according to a Reuters report.
Hugh Gimber, global market strategist at JPMorgan Asset Management, told CNBC s Squawk Box Europe Wednesday that growth and inflation data was now changing from forecast to a fact.
(Bloomberg) U.S. futures drifted higher, while European and Asian stocks advanced as investors weighed earnings from companies including some of the world’s biggest banks. Treasury yields edged up. Contracts on the S&P 500 Index rose 0.1%, with Goldman Sachs Group Inc. climbing in pre-market trading after its revenue beat estimates. JPMorgan Chase & Co. dropped 0.5% as the bank warned that loan demand remained tepid. Shares of Discovery Inc. fell after Credit Suisse Group AG unloaded about $2 billion of stocks tied to the Archegos Capital Management blowup, including those of the media company. Nasdaq 100 futures outperformed, while European shares got a boost from positive updates by LVMH and SAP SE. Oil rose above $61 a barrel. With global equities hovering near all-time highs, investors are looking to the earnings season for further catalysts. Expectations of a strong profit rebound have helped markets rally, setting the bar high as reporting gets underway. More broadly, investo