The Democrat-controlled House will pass the bill later this week
Asian shares were mixed Monday after the U.S. economic relief package passed the Senate over the weekend. The bill provides direct payments of up to $1,400 for most Americans and extended emergency unemployment benefits. The Democrat-controlled House will pass the bill later this week. Japan’s benchmark Nikkei 225 slipped 0.42%, Australia’s S&P/ASX 200 gained 0.43%, South Korea’s Kospi shed 1.00%, Hong Kong’s Hang Seng fell 1.92%, while the Shanghai Composite fell 2.3%.
In Europe, stocks edged higher on Monday, with pan-European Stoxx 600 climbing 0.5% in early trade despite the benchmark U.S. 10-year Treasury yield moved above 1.59%. On the data front, Eurozone March Sentix investor confidence arrived at 5.0 versus 1.4 expected. The sentiment indicator jumped to its highest level in over a year amid vaccine optimism and a better economic outlook. In the report, Sentix noted that global vaccination campaigns are making good progress, raising hopes of effective protection.
Meanwhile, the dollar extends its rally at the beginning of the week, rising nearly across the board. As such, EUR/USD retreats for the fourth consecutive day, falling further after a break below the 1.1900 handle. The pair dipped to more than three-month lows around 1.1865. the greenback derives support from the news that the US Senate passed the $1.9 trillion stimulus package on Saturday and is expected to be signed by President Biden at some point later this week.
Oil prices jumped over 2% during Asian trading hours on Monday before reversing gains. Brent crude climbed to the $71.40 area for the first time since May 2019 after Saudi Arabia said that its oil facilities were targeted by missiles and drones on Sunday. Following the early rally, the futures dipped back below the $70 handle as traders proceeded to profit-taking.