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GLOBAL MARKETS-Shares stall near peaks, dollar shuffles higher

Published 04/05/2021, 10:10
Updated 04/05/2021, 13:54
© Reuters.
AXJO
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HK50
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* World shares near record high as reopening trades dominate
* Dollar clawing back ground in FX markets
* Commodities consolidate gains
* COVID waves dominate in major emerging markets
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Marc Jones
LONDON, May 4 (Reuters) - World share indexes stalled near
all-time highs on Tuesday and the dollar and government bond
yields tip-toed higher, as some of the biggest global economies
pushed on with easing COVID-19 restrictions.
A surge in the price of almost everything, from wood and
wheat Wv1 to metals and microchips, has fuelled talk of an
inflation spike.
Sensitive cyclical sectors including energy, mining and
travel and leisure helped drive Europe modestly higher, while
Wall Street's tech giants, which have surged during the
pandemic, were mostly pointing lower again. .EU .N
On Monday, New York Fed head John Williams had said that the
U.S. economic momentum was "not nearly enough" yet to change
anything.
Bond market borrowing costs inched up on Tuesday, although
signs that the world's major central banks remain in no rush to
reel in their massive stimulus schemes kept 10-year U.S.
Treasury yields under 1.65% and Germany's Bund yields below
13-month highs. GVD/EUR
Australia's central bank left its key interest rates at near
zero overnight for a fifth straight meeting too and pledged to
keep its policies super-supportive for a prolonged
period. MSCI's broadest global index .MIWD00000PUS , which tracks
50 countries, was barely budged just 1% off its record high.
Australia's S&P/ASX200 .AXJO had risen 0.6% and Hong Kong
.HSI had climbed 0.7% in thin Asian trading due to holidays in
both China and Japan.
Taiwan's tech-heavy bourse was the region's key exception,
with stocks .TWII closing down 1.7% amid a rare uptick in
domestic COVID-19 infections and after Wall Street's tech
indexes had struggled on Monday. .N
"We see near-term volatility in inflation as the economic
restart progresses, and believe markets under-appreciate
potential for medium-term price pressures," analysts at
BlackRock said in their weekly note.

SCOXIT?
In the currency market, the dollar USD= clawed back some
ground to partially unwind last month's long decline as
investors squared up positions ahead of monthly payrolls data
due at the end of the week. FRX/
The dollar index =USD , which measures its value against a
basket of six other major currencies, climbed 0.4% to 91.34,
just shy of a near two-week high. It fell more than 2% in April.
Sterling GBP=D3 dipped marginally to $1.3865 ahead of a
Bank of England meeting on Thursday where analysts reckon the
bank may announce a slowdown in its bond buying programme.
There are also key British regional elections on Thursday.
Focus will be mostly on Scotland where a big win for the SNP
party in the country's devolved parliament elections would put
the issue of independence from the UK firmly back on the radar.
ether ETH=BTSP powered to another record
peak, nearing $3,500.
Oil markets flip-flopped, firsting nudging Brent LCOc1
down 0.2% to $67.38 before hoisting it back to almost $68.50
again. Wheat Wv1 took a breather after its near 20% April
surge while gold dipped from a more than two-month high to
$1,785 per ounce. O/R GOL/
Emerging market investors had plenty to juggle too. India's
stock markets dipped as COVID-19 infections surged past 20
million and traders were bracing for another busy
day in Latin America. Colombia's peso COP= slumped on Monday
after its president withdrew a tax reform plan, sparking fears
for its investment grade credit rating.
Peru's markets have been rattled by elections, El Salvador's
bonds have been hit by the country's President ousting top
judges while Brazil's heavyweight central bank is expected to
hike interest rates again this week.



<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
Sterling's referendum rollercoaster rides https://tmsnrt.rs/3vos5nM
India suffering world's worst COVID wave https://tmsnrt.rs/2Sf8pV1
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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