European stocks set for record winning streak

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Dollar and bonds ease after US inflation data dampens talk of Fed tapering, while Asian shares were jittery after reports of further clampdowns by China regulators

A trader keeps an eye on market indices at the New York Stock Exchange. Picture: BLOOMBERG/MICHAEL NAGLE

Insurance giants Aegon, Aviva and Zurich jumped after reporting earnings, while signs of life in the holiday market helped TUI shares claw back 3% of the 50% they have lost during the Covid-19 pandemic. Otherwise it was still about Wednesday’s US consumer price inflation data, where a widely forecast slowdown in the pace of rises had taken some heat out of speculation about when the Federal Reserve might taper its massive bond buying programme.

In the currency market, the dollar was still near a four-month peak against major peers after it, too, had retreated after the inflation data. Among the biggest losers was Chinese online insurer ZhongAn, which fell 11.5% after state media said China’s banking and insurance regulator would step up scrutiny of online insurance companies.

“The money is just in the US and European markets right now, and that’s our preferred market too,” said Daniel Lam, senior cross-asset strategist at Standard Chartered Wealth Management.

 

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