HomeWorld BusinessDollar, shares rebound as US data calms stimulus fears

Dollar, shares rebound as US data calms stimulus fears

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LONDON — The dollar and world shares recovered from their lowest levels in a month yesterday and German Bund futures eased after weak United States data calmed concerns of an early cut in central bank stimulus.

Reuters

The dollar was back above 100 yen and the US/ currency’s index was clawing back some of the 1% falls seen on Monday after the Institute for Supply Management’s index of US factory activity fell to 49, its lowest since June 2009.

European stocks opened 0,6% higher, tracking an overnight rebound in US and Asian shares and looking to snap a two-day losing streak that has left them at their lowest level since early May.

“With (positive) closes in the US and Japan we’ll try to recover today,” said Ouri Mimran, an equities strategist at Natixis in Paris. “A break above yesterday’s high will give the bullish signal.”

As risk assets stabilised and investors kept positions tight ahead of the European Central Bank and Bank of England’s monthly meetings tomorrow and key US jobs data on Friday, German Bund futures dipped and peripheral eurozone debt edged up.

Commodity markets were also steadier. Copper climbed for a second session, while gold and oil were both little changed at $1 406 an ounce and $102 a barrel respectively.

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