Global shares hovered at five-year highs on Monday while the dollar edged up against the yen as investors looked ahead to a deluge of U.S. data for clues on when the Federal Reserve will begin scaling back its stimulus.
Many in the markets think the Fed will be wary of trimming its $85 billion-a-month bond-buying program, which has supported riskier assets like shares, until the economic impact of a 16-day partial U.S. government shutdown becomes clearer.
“We’re opening with a slightly positive tone …, on the back of last week’s decision to extend (U.S. fiscal) deadlines which is seen pushing back tapering from the Fed, a view which continues to support risky assets,” said Richard McGuire, senior rate strategist at Rabobank.
European shares .FTEU3 touched a fresh five-year high in early trade, though moves were limited ahead of the U.S. data, which begins with home sales numbers on Monday and includes the keenly watched non-farm payrolls report on Tuesday.
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