European stocks decline with dollar; oil advances

Bloomberg

European stocks dropped, the dollar weakened and US equity futures fluctuated as investors mulled how much further
to take the global rally in risk
assets.
Technology and health-care shares led the Stoxx Europe 600 Index lower. The greenback fell against a basket of its peers and headed for the longest losing streak since 2011. Brent crude oil rose to $43 a barrel after historic output curbs were extended. Iron ore jumped after a Brazil mine suspended operations after Covid-19 infections surged.
After a surprisingly good US jobs report last week, risk assets are reflecting strong optimism in the economic rebound and the S&P 500 is close to wiping out its losses for the year. Investor focus will now turn to the Federal Reserve’s upcoming policy meeting, and whether officials will re-commit to using their full range of tools to support the American economy during the pandemic.
“Markets have responded positively to falling infection rates in the major economies, and signs of increased consumption as countries emerge from lockdown,” Gavekal Research analysts wrote in a weekend note. “But by buying at present valuations, investors appear to be pricing in a perfect Keynesian recovery in the
second half of the year.”
The Stoxx Europe 600 Index fell 0.4% as of 9:27 am London time and futures on the S&P 500 Index gained 0.3%.
While Germany’s DAX Index decreased 0.6%, the MSCI Asia Pacific Index increased 0.7%.
The Bloomberg Dollar Spot Index fell 0.3% and the euro climbed 0.2% to $1.1309.
While the British pound advanced 0.1% to $1.2686, the Japanese yen was little changed at 109.54 per dollar.
The yield on 10-year Treasuries increased two basis points to 0.92% and Germany’s 10-year yield fell less than one basis point to -0.28%.
While Britain’s 10-year yield decreased less than one basis point to 0.35%, Australia’s 10-year yield was unchanged at 1.101%.
As Brent crude advanced 0.9% to $42.68 a barrel, gold strengthened 0.6% to $1,695.52 an ounce and iron ore surged 5.3% to $102.61 per metric ton.