Shares take a breather after stellar month, China data upbeat
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
WEDNESDAY, MAY 25, 2022
WEDNESDAY, MAY 25, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
Shares take a breather after stellar month, China data upbeat

Global Economy

Reuters
30 November, 2020, 11:15 am
Last modified: 30 November, 2020, 11:20 am

Related News

  • Global mutual funds investors could sell $350B worth equities this year -Barclays
  • Stocks back in the red as taka devalue further
  • World economy has 'buffer' against recession, says IMF's Gopinath
  • Asia stocks slip with US futures, euro holds gains
  • Finance minister calls for stock market stabilisation

Shares take a breather after stellar month, China data upbeat

The rush to risk has also benefited oil and industrial commodities while undermining the safe-haven dollar and gold

Reuters
30 November, 2020, 11:15 am
Last modified: 30 November, 2020, 11:20 am
A man wearing a protective face mask walks past a screen displaying a graph showing recent Nikkei share average outside a brokerage, amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan November 2, 2020. REUTERS/Issei Kato
A man wearing a protective face mask walks past a screen displaying a graph showing recent Nikkei share average outside a brokerage, amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan November 2, 2020. REUTERS/Issei Kato

World shares paused to assess a record-busting month on Monday as the prospect of a vaccine-driven economic recovery next year and yet more free money from central banks eclipsed immediate concerns about the coronavirus pandemic.

Helping sentiment was a survey showing factory activity in China handily beat forecasts in November, and the country's central bank surprised with a helping of cheap loans. That left blue chips up 1.3% on the day and 7.4% for the month.

The rush to risk has also benefited oil and industrial commodities while undermining the safe-haven dollar and gold.

"November looks set to be an awesome month for equity investors with Europe leading the charge at a country/regional level," said NAB analyst Rodrigo Catril.

Many European bourses are boasting their best month ever with France up 21% and Italy almost 26%. The MSCI measure of world stocks is up 13% for November so far, while the S&P 500 has climbed 11% to all-time peaks.

Early Monday, MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.4%, to be up almost 11% for the month in its best performance since late 2011.

Japan's Nikkei 225 eased 0.4%, but was still 15.4% higher on the month for the largest rise since 1994.

E-Mini futures for the S&P 500 dipped 0.4%, and EUROSTOXX 50 futures 0.6%.

"Markets are overbought and at risk of a short term pause," said Shane Oliver, head of investment strategy at AMP Capital.

"However, we are now in a seasonally strong time of year and investors are yet to fully discount the potential for a very strong recovery next year in growth and profits as stimulus combines with vaccines."

Cyclical recovery shares including resources, industrials and financials were likely to be relative outperformers, he added.

The surge in stocks has put some competitive pressure on safe-haven bonds but much of that has been cushioned by expectations of more asset buying by central banks.

Sweden's Riksbank surprised last week by expanding its bond purchase program and the European Central Bank is likely to follow in December.

Dollar In Decline

Federal Reserve Chair Jerome Powell testifies to Congress on Tuesday amid speculation of further policy action at its next meeting in mid-December.

As a result US 10-year yields are ending the month almost exactly where they started at 0.84%, a solid performance given the exuberance in equities.

The US dollar has not been as lucky.

"The idea that a potential Treasury Secretary (Janet) Yellen and Fed chair Powell could work more closely to shape and coordinate super easy monetary policy and massive fiscal stimulus that could drive a rapid post pandemic recovery saw the dollar under pressure," said Robert Rennie, head of financial market strategy at Westpac.

Against a basket of currencies, the dollar index was pinned at 91.771 having shed 2.4% for the month to lows last seen in mid-2018.

The euro has caught a tailwind from the relative outperformance of European stocks and climbed 2.7% for the month so far to reach $1.1967. A break of the September peak at $1.2011 would open the way to a 2018 top at $1.2555.

The dollar has even declined against the Japanese yen, a safe-haven of its own, losing 0.7% in November to reach 103.89 yen, though it remains well above key support at 103.16.

Sterling stood at $1.3334, having climbed steadily this month to its highest since September, as investors wagered a Brexit deal would be brokered even as the deadline for talks loomed ever larger.

One major casualty of the rush to risk has been gold, which was near a five-month trough at $1,771 an ounce having shed 5.6% so far in November.

Oil, in contrast, has benefited from the prospect of a demand revival should the vaccines allow travel and transport to resume next year.

Some profit-taking set in early Monday ahead of an OPEC+ meeting to decide whether the producers' group will extend large output cuts. Brent crude futures fell 52 cents to $47.66, while US crude eased 60 cents to $44.93 a barrel.

Top News / World+Biz

global markets / Global Stock Market / World economy / Global economy / Global shares / Share markets / Stock Market

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • The war has blocked Ukraine’s grain exports by sea, cutting off vital supplies for countries from Somalia to Egypt.Photographer: Islam Safwat/Bloomberg
    Russia is winning from the global food crisis it helped create
  • PM for protecting environment during implementation of development projects
    PM for protecting environment during implementation of development projects
  • Pakistan Prime Minister Imran Khan. Picture: Collected
    Pakistan govt plans to arrest Imran Khan, top PTI leaders

MOST VIEWED

  • The war has blocked Ukraine’s grain exports by sea, cutting off vital supplies for countries from Somalia to Egypt.Photographer: Islam Safwat/Bloomberg
    Russia is winning from the global food crisis it helped create
  • The logo of Barclays bank is seen on glass lamps outside of a branch of the bank in the City of London financial district in London September 4, 2017. REUTERS/Toby Melville
    Global mutual funds investors could sell $350B worth equities this year -Barclays
  • A man counts Pakistani banknotes along a roadside in Islamabad, Pakistan, November 16, 2017. REUTERS/Faisal Mahmood
    Pakistani rupee nosedives against US dollar as political crisis deepens
  • FILE PHOTO: A vendor counts Russian rouble banknotes at a market in Omsk, Russia February 18, 2022. REUTERS/Alexey Malgavko/File Photo
Date: 23/05/2022
    Rouble firms to 4-yr high vs dollar as Russian debt payment licence expires
  • A picture illustration of US dollar, Swiss Franc, British pound and Euro bank notes, taken in Warsaw January 26, 2011. REUTERS/Kacper Pempel/File Photo
    Sterling regains some lost ground vs euro, steady against dollar
  • A currency trader counts Pakistani rupee notes as he prepares an exchange of dollars in Islamabad, Pakistan December 11, 2017. REUTERS/Caren Firouz/Files
    Default threat reaches Pakistan as political crisis deepens

Related News

  • Global mutual funds investors could sell $350B worth equities this year -Barclays
  • Stocks back in the red as taka devalue further
  • World economy has 'buffer' against recession, says IMF's Gopinath
  • Asia stocks slip with US futures, euro holds gains
  • Finance minister calls for stock market stabilisation

Features

Psycure has received various awards for their extraordinary contributions to promoting Sustainable Development Goals. Photo: Courtesy

Psycure: Meet the organisation serving the underserved university students (and beyond) with mental healthcare 

7h | Panorama
Underlying problems such as school dropouts need to be addressed first before taking a legal route to stop child labour. Photo: Reuters

‘Child labour in a country like Bangladesh is primarily a development issue, not so much of enforcement’

8h | Panorama
The balcony railings of the Boro Sardar Bari in Sonargaon. Made of cast iron, these railings feature vertical posts with intricate designs on top. Photo: Noor-A-Alam

The evolution of railing and grille designs

1d | Habitat
A Russian army service member fires a howitzer during drills at the Kuzminsky range in the southern Rostov region, Russia January 26, 2022. REUTERS/Sergey Pivovarov/File Photo

3 months of Ukraine war : Miscalculations, resistance and redirected focus

1d | Analysis

More Videos from TBS

Soaring commodity prices put pressure on budget

Soaring commodity prices put pressure on budget

2h | Videos
The alarming effects of the global food crisis

The alarming effects of the global food crisis

6h | Videos
Mangoes from Satkhira going to Iraq

Mangoes from Satkhira going to Iraq

7h | Videos
The dream of building home on moon

The dream of building home on moon

7h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
Banking

Dollar hits Tk100 mark in open market

3
Bangladesh at risk of losing ownership of Banglar Samriddhi
Bangladesh

Bangladesh at risk of losing ownership of Banglar Samriddhi

4
BSEC launches probe against Abul Khayer Hero and allies
Stocks

BSEC launches probe against Abul Khayer Hero and allies

5
The reception is a volumetric box-shaped room that has two glass walls on both the front and back ends and the other two walls are adorned with interior plants, wood and aluminium screens. Photo: Noor-A-Alam
Habitat

The United House: Living and working inside nature

6
Illustration: TBS
Banking

Let taka slide

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab