German stocks lead rally as EU recovery deal rally cheers markets – business live

Rolling coverage of the latest economic and financial news, as European stock markets hit five-month highs

4.08pm BST

The US dollar is now coming under pressure, losing ground against major currencies.

This has pushed the euro up to $1.1486 (a new four-month high). Sterling has risen to a six-week high, at $1.275.

The US dollar had been strong for the best part of a decade, but since its March high the currency has been falling.

A combination of stimulus from the Federal Reserve creating more US dollars, low savings, and high levels of government debt could mean a weaker US dollar is here to stay. That would be good news for emerging markets where companies borrow in US dollars, as a weaker currency makes their borrowing costs cheaper.

3.56pm BST

Tech companies aren’t immune to the Covid-19 recession, of course.

Microsoft, for example, is cutting 960 jobs at its LinkedIn business, which has suffered from the slump in vacancies.

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