Global markets are fixated on the timing of tapering of QE by central banks, particularly the Fed,” said analysts at ANZ in a note.
“That’s unsurprising, given the support that the extra liquidity has provided to equities and assets more generally,” they added. “The latest guidance from senior FOMC officials is that tapering is still very much on the agenda this year, but is unlikely to be announced until November.”
The tension is only set to mount ahead of the Fed’s next meeting on Sept. 21-22, and played a part in nudging U.S. 10-year yields up toward a major chart bulwark around 1.38% last week. Yields were last at 1.33% as stocks eased.
The general air of risk aversion helped lift the dollar indec to 92.767 and off the recent low of 91.941.
The euro has faded back to $1.1788, from the September top of $1.1908 and under support at $1.1800. The dollar remains sidelined on the yen at 109.99, having spent an entire month trapped in a tiny range of 109.40-100.46.
Gold has also had trouble breaking higher and was last flat at $1,791 an ounce, after shedding 2.1% last week when it repeatedly failed to clear resistance above $1,1830.
Oil prices firmed on Monday supported by growing signs of supply tightness in the United States as a result of Hurricane Ida. About three-quarters of the U.S. Gulf’s offshore oil production has remained halted since late August. [O/R]
Brent added 34 cents to $73.26 a barrel, while U.S Crude rose 31 cents to $70.03.
The FTSE MIB climbed up by 0.68% to 25,851.30. In the cash markets, the DAX Germany was trading up 0.67% to 15,711.65. CAC 40 in France rose by 0.58% to 6,702.22 while the FTSE 100 in the U.K. were up by 0.58% to 7,068.35. ,at the time of writing.