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(Bloomberg) — The dollar extended its recent slide and gold rose to a record high as investors mulled simmering Sino-American tensions, the upcoming Federal Reserve meeting and signs the virus spread in the U.S. may be slowing. Global stocks were mixed.
The Bloomberg Dollar Spot Index fell as much as 0.8% to its lowest in about a year and a half. Shares fluctuated in Japan, Hong Kong and Australia, while U.S. and European futures climbed after last week’s declines. A 10% surge in Taiwan Semiconductor Manufacturing Co. led shares in Taipei toward a record high. Silver rose as investor appetite for precious metals continued. Treasuries edged higher.
Investors this week will be looking to the Federal Reserve’s meeting for clues on what comes next for policy amid expectations for more accommodation ahead. That comes as wrangling continues in Washington over a stimulus bill. On the virus front, cases fell in California, Arizona, Florida and New York.
“The July FOMC meeting should kick off a period from August into mid-September in which markets should price in an increasingly dovish, forward-looking Fed policy via lower real rates,” Morgan Stanley strategists including Matthew Hornbach wrote in a report. “This should benefit breakeven inflation rates, support risk assets, and weigh on the U.S. dollar.”
Elsewhere, oil edged lower after last week’s gain. Bitcoin climbed back above $10,000.
Here are some key events coming up:
Earnings include, Apple, Amazon.com, Alphabet, Chevron, Rio Tinto, L’Oreal, Caterpillar, Samsung, Barclays and Credit Suisse.The Federal Open Market Committee holds its policy meeting on Tuesday, with an announcement due on Wednesday.U.S. second-quarter GDP is expected on Thursday.China PMI data comes Friday.
These are the main moves in markets:
Stocks
Futures on the S&P 500 rose 0.4% as of 7:00 a.m. in London. The gauge fell 0.6% on Friday.Japan’s Topix index rose 0.2%.South Korea’s Kospi added 0.7%.Hong Kong’s Hang Seng fell 0.4%.Shanghai Composite rose 0.3%.Euro Stoxx 50 futures gained 0.2%.
Currencies
The yen rose 0.5% to 105.62 per dollar.The offshore yuan gained 0.2% to 7.0024 per dollar.The euro bought $1.1702, up 0.4%.The Bloomberg Dollar Spot Index fell 0.6%.
Bonds
The yield on 10-year Treasuries dipped to 0.58%.Australia’s 10-year bond yield rose about three basis points to 0.89%.
Commodities
West Texas Intermediate crude oil fell 0.2% to $41.21 a barrel.Gold was at $1,936 an ounce, up 1.8%.
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