EUR/USD likely to find a peak near 1.25: UBS
By Julien Ponthus
LONDON, June 15 (Reuters) - Fears that a second wave of
COVID-19 infections is under way sent jitters across global
markets on Monday with stocks and oil under pressure while
investors bought into safe havens such as German government
debt.
Beijing reported its second consecutive day of record
numbers of virus cases and hospitalisations rose in some U.S.
states, leading investors to reassess their assumption of a
swift V-shaped recovery. "I am convinced that if cases continue to rise again, market
participants will clearly re-evaluate market valuations and
their assumptions", said Stephane Ekolo, an equity strategist at
TFS Derivatives in London.
"Market are pricing a too-optimistic recovery, in my
opinion, and there could be a reality check coming rather sooner
than later", he said.
The pan-European STOXX 600 .STOXX fell 2.5% with all
sectors and regional markets trading deep in the red after
losses accelerated in the final hours of trading in Asia.
Earlier, Japan's Nikkei .N225 fell 3.5% and South Korean
shares .KS11 tumbled 4.8%.
Futures for the S&P 500 Esc1 also extended losses,
shedding 2.9%.
The retreats follows a global rally since late March,
fuelled by central bank and fiscal stimulus and optimism about
countries gradually lifting the lockdowns implemented to stop
the spread of the novel coronavirus.
A number of analysts, however, have warned about a possible
disconnect between anticipation of a dire global recession and
the optimism in stock markets, with the Nasdaq hitting record
highs even though U.S. unemployment has surged.
Euro zone bond yields edged down as investors bought safer
assets such as government bonds.
Germany's 10-year bond yield was near a three-week lows at
-0.46%.
Brent crude LCOc1 futures fell 2.7%, to $37.69 a barrel.
U.S. West Texas Intermediate crude CLc1 futures were down
4.1%, to $34.78 a barrel. O/R
Oil investors await OPEC+ committee meetings later this week
that will advise the producer group and its allies on output
cuts. O/R In currencies, the dollar index =USD index rose to 97.27,
flirting with a 10-day high, while risk-sensitive currencies
such as the Norwegian and Swedish crowns suffered, trading
around two-weeks lows.
The euro EUR=EBS slipped 0.1% versus the dollar at $1.1243
Worldwide coronavirus cases have crossed 7.86 million with
430,501 deaths, according to a Reuters tally. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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