Shares take a breather after stellar month, China data upbeat

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World shares paused to assess a record-busting month on Monday as the prospect of a vaccine-driven economic recovery next year and yet more free money from central banks eclipsed concerns about the coronavirus pandemic in the near-term.

FILE PHOTO: Passersby wearing protective face masks are reflected on a stock quotation board outside a brokerage, in Tokyo, Japan November 10, 2020. REUTERS/Issei Kato

“November looks set to be an awesome month for equity investors with Europe leading the charge at a country/regional level,” said NAB analyst Rodrigo Catril. “Markets are overbought and at risk of a short term pause,” said Shane Oliver, head of investment strategy at AMP Capital. The surge in stocks has put some competitive pressure on safe-haven bonds but much of that has been cushioned by expectations of more asset buying by central banks.

Against a basket of currencies, the dollar index was pinned at 91.771 having shed 2.4% for the month to suffer its lowest close in two years on Friday. Sterling stood at $1.3330, having climbed steadily this month to its highest since September, as investors wagered a Brexit deal would be brokered even as the deadline for talks loomed ever larger.

 

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