The U.S. House of Representatives is likely to vote on Biden’s package by the end of this week
Wall Street stocks erased early gains, finishing mostly lower on Friday amid profit-taking in most companies amid fears of rising rates and higher inflation. On the data front, the National Association of Realtors said that closed sales of existing homes in January increased 0.6% compared with December. As such, the S&P 500 closed 0.2% lower, the Dow Jones Industrial Average finished flat, and the Nasdaq Composite gained less than 0.1%. For the week, the S&P 500 lost 0.71% while the Nasdaq shed 1.57%, and the Dow gained 0.11%.
Asian stocks were mixed amid a combination of worries about inflation and hopes for a recovery from the coronavirus pandemic. on the positive side, the U.S. House of Representatives is likely to vote on Biden’s proposed package by the end of this week. In Japan, the Nikkei 225 gained slightly less than 0.5%, South Korea’s Kospi shed nearly 1%, Australia’s S&P/ASX 200 lost 0.2%, and the Shanghai Composite in China fell 1.45%.
In Europe, equities retreated at the start of the session amid a more cautious tone among investors. The pan-European Stoxx 600 dropped over 1% in early trade, with US stocks index futures losing ground as well. As for the data, Germany’s February Ifo business climate index arrived at 92.4 versus 90.5 expected. Following the release, the Ifo economist said that the German economy is looking towards an upswing, and climate has improved in construction, retail, and services.
Elsewhere, the dollar is mostly up as risk sentiment keeps deteriorating on Monday. The USD index rose to daily highs around 90.50 as the greenback continues to derive support from higher US yields. Against this backdrop, the EURUSD pair has slipped to the 1.2100 area while trying to hold above the 20-DMA early in Europe. If the common currency fails to withstand the pressure, the 1.2000 handle will come back into market focus.