LIVE MARKETS-Moderate dollar selling expected into month-end

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

MODERATE DOLLAR SELLING EXPECTED INTO MONTH-END

Models from both Barclays and CitiFX are signalling moderate U.S. dollar selling heading into the end of June.

U.S. equities have outperformed peers this month, with the S&P 500 .SPX rising about 5%, compared to a 0.8% drop for Europe's STOXX 600 .STOXX.

"Overall, the resilient performance of US equities dominates our model due to the large market cap and balances out the effect of a weak dollar, inducing our model to produce a moderate dollar-selling signal at the end of this month and quarter," writes Barclays analyst Sheryl Dong in a note.

Citi say similar.

"We estimate that both international equity and bond investors will be net USD sellers this month-end, largely driven by foreigners’ needs to hedge gains in US assets," Citi quant analyst Kristjan Kasikov says.

"US investors’ needs to reduce hedges on losses in European equities add to the USD selling needs of equity investors."

(Samuel Indyk)

FOR WEDNESDAY'S OTHER LIVE MARKETS POSTS:

STOXX MAKES TENTATIVE GAINS AS AEROSPACE, AUTOS PROVIDE LIFT CLICK HERE

EUROPE BEFORE THE BELL: FUTURES UP AS CEASEFIRE LIFTS RISK APPETITE CLICK HERE

A FRAGILE CEASEFIRE IS GOOD ENOUGH FOR MARKETS CLICK HERE