World shares and the dollar zigzagged higher on Friday, as hopes for economic recovery and the weeks easing of global bond market yields helped lift the mood.
As the last full week of a hectic first quarter drew to a close, traders were still watching the worlds most costly traffic jam build up in the Suez canal and the global COVID19 case count rising again.
Asian stocks had clawed off a threemonth low overnight as Chinese markets rebounded from their latest U.S. relationship worries while a near 3 jump in commodity stocks and weak euro put Europe on course for a fourth straight weekly rise.
Euro zone bond yields edged up but benchmark German bonds were set for their best weekly performance in 312 months as the blocs coronavirus woes supported its safehaven assets.
The euros struggles are part of that too but the dollar bulls are on the charge again with the U.S. vaccine programme ramping up. The greenbacks rise on Friday meant it had almost clawed back all its postU.S. election fall. Emerging markets currencies have had their worst run of the year this week.
We left 2020 with the validation of the consensus view the dollar would weaken, said the chief investment officer at Indosuez Wealth Management, Vincent Manuel.
We have woken up in 2021 facing the reality that the U.S. is growing much quicker than Europe… so we have a massive divergence.
Weekly money flow data from Bank of America showed global investors have been darting for safety amid this weeks drama….