Stocks hit record as Brent oil reaches $60

Bloomberg

Global stocks rise to a record on reflation bets after Janet Yellen pushed for rapid US stimulus and coronavirus infections slowed across the globe. Brent oil advanced above $60 a barrel for this first time in more than a year.
US equity futures received a boost from comments by Treasury Secretary Yellen that the US can return to full employment in 2022 if it enacts a robust enough relief package. The 30-year Treasury yield rose to highest in a year, while the pace of US inflation implied by the bond market accelerated to the fastest since 2014.
The Stoxx Europe 600 Index kicked off the week in the green, with Italian equities outperforming as Mario Draghi sets about to form a new national government. Dialog Semiconductor Plc shares jumped after the company agreed to be acquired by Renesas Electronics Corp. In Japan, the Topix index ended Monday at the highest since 1991 amid reports the government may lift its state of emergency early for some areas.
Investors are taking comfort from the continued rollout of vaccines and data suggesting a declining trend in infections in countries like the US. A Citigroup Inc. gauge of global risk aversion dropped to its lowest since the pandemic first roiled markets last year. Weaker-than-forecast US jobs data reinforced economic risks as the pandemic lingers, but also highlighted the case for further stimulus.
“Risk sentiment brightened as anticipation over the US stimulus package is growing,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co. “Although the scale of US package is likely to be reduced, the amount will be still substantial to bolster the US economy.”
President Joe Biden is pushing for a mammoth $1.9 trillion economic relief measure. Some commentators, such as former Treasury Secretary Larry Summers, have raised questions about the size of the package and risks such as much faster inflation.
Futures on the S&P 500 Index increased 0.3% as of 8:14 am London time and the Stoxx Europe 600 Index gained 0.4%.
While the MSCI Asia Pacific Index rose 0.8%, the MSCI Emerging Market Index climbed 0.3%.
The Bloomberg Dollar Spot Index was little changed and the euro was little changed at $1.2047.
While the British pound was little changed at $1.3738, the onshore yuan strengthened 0.1% to 6.457 per dollar and the Japanese yen weakened 0.1% to 105.49 per dollar.
The yield on 10-year Treasuries gained three basis points to 1.19% and the yield on two-year Treasuries climbed less than one basis point to 0.11%.
While Germany’s 10-year yield gained three basis points to -0.42%, Britain’s 10-year yield jumped five basis points to 0.53% and Japan’s 10-year yield rises one basis point to 0.071%.
While West Texas Intermediate crude gained 1.3% to $57.57 a barrel, Brent crude gained 1.3% to $60.12 a barrel. Gold strengthened 0.1% to $1,815.54 an ounce.