Gold soars to record highs and the euro surpasses $ 1.17, while European travel stocks plummet into Spain’s quarantine
Gold rose to a record high and the dollar weakened Monday as European travel stocks slumped.
As US lawmakers debate a new round of stimulation and worries about a stagnating economic recovery, gold futures turn GOLD,
climbed over $ 32 an ounce. The euro EURUSD,
traded above $ 1.17, while still as low as $ 1.08 in May, as traders respond to the European Union’s new stimulus plan and better economic data than the US
“Those looking for both security and a decent return have only one real option right now – with treasury yields close to zero and negative in real terms, and money making no money. The “TINA” theory – there is no alternative – is the last factor driving the precious metal to heaven, “said Michael Brown, senior market analyst at Caxton.
The German DAX DAX,
rose while the French CAC 40 PX1,
and UK FTSE 100 UKX,
saw small losses in early action.
With a decrease of 1.5% last week, the Stoxx Europe 600 SXXP,
Futures on the Dow Jones Industrial Average YM00,
rose 112 points.
Travel organizer TUI TUI,
fell nearly 9% and International Airlines Group IAG,
and easyJet EZJ,
lost 8% each as Britain over the weekend said it will quarantine visitors from popular holiday destination Spain due to rising cases of coronavirus there.
which separately reported a loss of € 185 million for the quarter ended June and held 99% of ground traffic, decreased by 7%.
“Tourism and summer activities will certainly remain a risk for European investors if mild measures, such as social distance and the obligation to wear masks, do not prevent occurrences. Investors fear renewed lockdowns, although restrictions are expected to be selective in the near future rather than a general halt to economic activity, “said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
rose 3.6% after saying it would look for an IPO for Qualtrics, the cloud software company that bought it in 2018 for 8 billion, as it reported an increase in earnings in the second quarter.
was stable after saying that the Daiichi Sankyo Co. Would pay 4568,
up to $ 6 billion in a drug deal against cancer.