Softer Euro weighs on European stocks [Video]
|The US dollar gained, and the euro fell yesterday, after data from the Eurozone countries showed a faster-than-expected easing in inflation, while the job openings data from the US hinted, yet again, at further resilience in the US jobs market.
As a result of softer European inflation and stronger US job openings data, the EURUSD fell as low as 1.0635 yesterday, and the yield spread between the German and US 10-year bonds fell to the lowest levels since the end of February. Softer euro weighs on European stocks.
On the political front, the US House cleared the debt limit bill despite critics both sides. With the bill now headed to the Senate, it’s almost certain that it will get approved before the June 5th deadline.
One would’ve expected a relief rally on the back of the news that the debt ceiling crisis is almost over, but the stock markets gave a muted reaction. The more than 5.5% slump in Nvidia shares outweighed the debt ceiling optimism.
In China, the Caixin manufacturing index printed a number above 50 for May, in the expansion zone, in contradiction with the official PMI which unexpected showed a faster contraction the same month earlier this week. The latter may have helped halting bleeding in crude oil and boosted Hang Seng in Hong Kong, but bears remain in charge of both markets.
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