European stocks, US futures extend gain; euro weakens

Bloomberg

European stocks extended gains with US equity futures as investors anticipated positive reports on jobs and the economy in Washington. The dollar headed for its best advance in eight sessions.
All 19 industry groups pushed higher on the Stoxx Europe 600 Index, with chemicals and technology shares among the top gainers. Infrastructure giant Atlantia SpA jumped as much as 13% after a Bloomberg report on the Benetton family’s talks over ending a dispute with the Italian government. Nasdaq 100 and S&P 500 Index contracts added to earlier gains, hours before the ADP employment report may signal the pace of private-sector employment is picking up.
Treasuries edged lower while the dollar strengthened 0.3% versus a group of its biggest peers. The euro fell further below $1.20, a level it breached for the first time in over two years. Ten-year bunds rise as Germany prepared to sell its first green sovereign bonds. Industrial metals climbed.
The rally in risk assets is extending from technology to raw materials shares and finding fuel in positive economic reports and continued loose monetary policy from central banks. The Fed will publish its Beige Book report on the state of the economic health of the nation. West Texas crude oil held steady above $43 a barrel, as gold slipped.
“We ask ourselves the same question over and over — how extended are valuations?” David Kotok, chief investment officer at Cumberland Advisors Inc., said on Bloomberg TV. “Then we see reports on earnings and there are positive earnings surprises coming from the tech companies and that would suggest if that momentum continues then in fact they are not yet overvalued.”
Elsewhere, China’s yuan rise for a fourth day as economic data continued to come in strong. Indonesia’s rupiah slumped amid concern the government could take more control over the central bank. Equities in Japan and South Korea posted modest gains, while in China and Hong Kong they edged lower.
The Stoxx Europe 600 Index climbed 1.8% as of 9:38 am London time and futures on the S&P 500 Index gained 0.6%. Australia’s S&P/ASX 200 Index gained 1.8%.
While the Bloomberg Dollar Spot Index gained 0.2% to 1,164.32, sterling gained 0.1% to 0.8892 per euro.
The Japanese yen fell 0.2% to 106.17 per dollar and the Indian rupee decreased 0.2% to 73.031 per dollar.
The yield on 10-year Treasuries gained one basis point to 0.68% and Germany’s 10-year yield decreased three basis points to -0.45%.
While Britain’s 10-year yield decreased three basis points to 0.265%, Belgium’s 10-year yield decreased four basis points to -0.203%.
West Texas Intermediate crude advanced 0.7% to $43.08 a barrel and gold declined 0.2% to $1,966.59 an ounce.
While silver falls 0.4% to $27.99 per ounce, iron ore increased 1.8% to $121.80 per metric ton.