Stocks, futures, and the dollar rise, as Treasury yields fall

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Stocks in Europe and U.S. futures climbed on Monday as concerns about China’s wealth crackdown subsided and traders took advantage of last week’s selloff to purchase up assets at favorable values. Bonds fell as demand for safe havens decreased. The Stoxx Europe 600 index rose for the second day in a row, with luxury stocks driving the charge. A report of a buyout attempt for J. Sainsbury Plc drove the grocery chain’s shares up more than 11 percent. The S&P 500 and Nasdaq 100 futures gained as the underlying indexes began to recover late last week.

It was the first time in six days that Treasury rates climbed, along with those on core European bonds. On Thursday, the Jackson Hole symposium, which may provide insight into how and when the Federal Reserve plans to cut bond purchases, will be watched closely by investors. There was a reversal of recent commodity weakness, with oil in New York rising toward $64. Some commodity currencies, such as Australian dollar and South African rand grew. For the first time since mid-May, Bitcoin has surpassed $50,000.

Dip-buying indicates that the market believes central banks will maintain support despite persisting dangers to global growth. However, companies continue to suffer with supply bottlenecks and rising input costs while the virus return throws a veil over the outlook in Europe, according to purchasing managers’ index data released on Monday. To get ready for the Federal Reserve’s Jackson Hole symposium on Thursday, traders will be examining manufacturing, GDP, and jobs statistics from across the pond in the next week “We do not expect much of ‘breaking news’ to come from the Jackson Hole symposium, but rather some form of relief that the policy course remains lower for longer,” said Daniel Egger, the CIO at St. Gotthard Fund Management. “There appears to be growing consensus that the Fed will tread very cautiously in this regard.”

Meanwhile. China’s technology stocks returned from a prolonged selloff, helping MSCI Inc.’s Asia-Pacific share index notch one of its greatest daily gains this month. The S&P 500 and Nasdaq 100 contracts both gained ground in the previous session.

Kaplan said he’d be willing to change his mind about the timing of the Fed’s asset-purchase programme if the delta strain continues and impedes economic development. In a move that could lessen confusion about the direction of monetary policy, Treasury Secretary Janet Yellen has backed Jerome Powell for a second term as Fed Chair. Regarding Covid-19, China has once again eradicated the virus from the country’s native population. Anti-infection strategies are being reviewed in Australia and New Zealand. Scott Morrison, Australia’s Prime Minister, said it’s exceedingly improbable that his country will ever return to a zero case rate.