- Equity markets rise throughout the world.
- Optimistic tone presses down on the dollar, which accelerates correction.
- Metals, cryptocurrencies and oil on the rise.
Equity markets across the world are rising at the start of Monday. The best tone comes after the Dow Jones had the eighth consecutive weekly decline, something that has not happened since 1932.
Widespread rises, while the dollar continues to fall
US stock futures are in the green. The S&P 500 climbs 1.10% and the Dow Jones 1.11%. In Europe the FTSE 100 gains 1.17% and the DAX 0.90%. The good tone was helped by the comments of the American president Joe Biden, that the rates on China that were imposed by the Trump administration were under review. In the Asian giant, there have been increases in COVID cases. At the same time, more monkeypox infections continue to appear.
The good tone is putting downward pressure on the dollar. DXY is down 0.65% to trade at 102.30, after falling to a nearly one-month low at 102.07. The euro is among the currencies that rise the most after a post by Christine Lagarde, the president of the European Central Bank (ECB) in a blog, stating that interest rates may be zero or positive by September. EUR/USD rose almost 130 pips on the day approaching 1.0700, while GBP/USD approached 1.2600.
The good tone also drags up the cryptocurrencies. BTC/USD remains above $30,000. Oil prices rise around 1%. Metals post an even more significant advance, with gold up 1.10% at $1861 and silver up 2.15% at $22.10.
The economic calendar shows no impact data ahead for Monday. Raphael Bostic (president of the Atlanta Fed) will speak, followed by Esther George (president of the Kansas Fed).
It is developing the Davos Economic Forum. There, Kristalina Georgieva, the manager of the International Monetary Fund, stated that they could further cut growth forecasts for this year.
Among the companies reporting first-quarter numbers on Monday is zoomAdvance Auto Parts and XPeng.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
