September 2020

(Bloomberg) – The dollar fell to its lowest point in two years, as US futures and European inventories rose after knowledge of Chinese production indicated that exports are supporting a recovery. Commodities led the Europe Stoxx 600 Index gains, while travel inventories fell. The euro strengthened to just under $ 1.20 and the Chinese yuan reached its highest point since 2019. The weakness of the dollar raised the costs of raw materials, oil, the cop consistent with oil. recording gains passld. The return on 10-year treasury expenses increased. Eurozone inflation turns negative for the first time since 2016 China’s economic insight provides investors with confidence that the world’s production engines are recovering from the pandemic. A consistent sonal indicator of Chinese manufacturing activity grew at the fastest rate in August since January 2011, thanks to rising exports and continued domestic recovery. In Europe, the economic scenario was more uneven. Consumer costs in the eurozone fell for the first time in 4 years, posing a challenge for policy makers, who have pushed the monetary formula in an attempt to stimulate demand. But it appears that there are speeds of improvement, and the German government has said that this year’s recession will not be as severe as expected. Investors also continue to take in last week’s Federal Reserve announcement that the central bank will be more accommodating and consistent with inflation to exceed the 2% target. “The weakness of the dollar is maximum and it will probably continue and I suspect it will be significantly weaker against the euro by the end of the year,” said Savvas Savouri, lead economist at Toscafund Asset Management. “We have the Fed chair obviously telling us that he needs inflation to go up, and the only reliable way to do that is to go through a weaker currency.” In Asia, inventory indices were combined in the region on Monday. Inventories in South Korea rose as benchmark Australian equities fell to their lowest level since early August. Here are some key occasions to watch this week: ISM production knowledge will be delivered in the US on Tuesday. Australian GDP is expected on Wednesday. Unemployment claims for the week ending August 29 are due Thursday. Friday’s jobs report is expected to show payrolls continued to rebound in August from virus lows. Here are the main market movements: Future Stocks in the S&P 500 Index rose 0.4% at 7:23 am New York Stoxx Europe 600 Index rose 0.2% MSCI Asia Pacific Index rose 0.3% MSCI Emerging Markets Index rose 0.9% Bloomberg Currencies Index Dollar Spot fell 0.4%. The euro gained 0.4% to $ 1.1982. The British pound was up 0.7% at $ 1.3469. little replacement at 105.87 consistent with the dollar. The offshore yuan strengthened 0.4% to 6.8214 per dollar. Bonds The yield on 10-year Treasury spending rose one basis point to 0.72%. The two-year Treasury spending yield rose less than one basis point to 0.13%. Germany’s 10-year yield gained one basis point to -0.39%. Britain’s 10-year yield was up 3 basis issues to 0.342%. Japan’s 10-year yield fell less than one basis point to 0.047%. Shortcuts West Texas Intermediate crude rose 0.7% to $ 43.14 a barrel, crude rose 0.7 9% to $ 45.8 in line with a barrel Gold strengthened 1.1% to $ 1,988.50 in line with the ounce For more pieces like this, visit bloomberg.com. to keep you going with the ultimate trusted source of business information. © 2020 Bloomberg L.P.