European stocks surge, dollar gains as Fed decision looms

 https://www.globalbankingandfinance.com/european-stocks-surge-dollar-gains-as-fed-decision-looms/


NEW YORK/LONDON (Reuters) -European shares surged to their highest since January 2022 and bond yields on both sides of the Atlantic eased on Monday even as markets scaled back what investors deemed had been overly ambitious bets on policy rate reductions at the end of 2023.

Stocks on Wall Street were little changed and the U.S. dollar advanced at the start of a packed week of big corporate earnings, European inflation data, Federal Reserve and Bank of England policy meetings and U.S. jobs numbers for January.

Europe’s broad STOXX 600 index briefly touched a fresh two-year high and traded slightly higher on the day after its biggest weekly gain in over two months last week. [.EU]

The dollar rose and the euro sank to almost a seven-week low, breaking below the 1.08 mark, as the market dialled back expectations of the extent of rate cuts this year by the Fed and European Central Bank (ECB), said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.

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