Global stocks extend rally to third day as earnings roll in

Bloomberg

The rally in global stock markets extended into a third day on Wednesday as companies from Amazon.com Inc. to Vodafone Group Plc posted strong results and the retail-trading frenzy subsided.
The Stoxx 600 Index climbed 0.7%, with most sectors in the green as corporate results rolled in. Italian stocks and bonds surged after Mario Draghi, the former European Central Bank president, was tapped to be the country’s next prime minister.
In the US, it looked like tech was firmly back in favour. Nasdaq 100 contracts climbed as earnings from Alphabet Inc. and Amazon.com Inc. impressed investors, while futures on the Russell 2000 Index of small-cap stocks dipped. Treasury yields edged up after Senate Democrats put President Joe Biden’s $1.9 trillion stimulus plan on a fast track to passage.
Shares are back in rallying mode as the speculative trades popular with Reddit crowds crumble, easing fears that they could lead to destabilising swings in the stock market. Treasury Secretary Janet Yellen has summoned US financial regulators to discuss the recent market volatility. GameStop Corp. and AMC Entertainment Holdings Inc. fell sharply in early trading on Germany’s Tradegate.
“The fact that markets have cooled down a bit with the retail-trading frenzy, that’s giving a little bit of optimism,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “Anytime there’s more stability to markets, there’s a breath of relief of all investors.”
Still, some urged caution. Bank of America Corp. strategists came out with a warning about rising bullishness, saying that a sentiment indicator is close to hitting a “sell” signal.
Meanwhile in Europe, Vodafone climbed after sales rose unexpectedly for the first time since March. Siemens AG edged higher after raising its annual guidance.
Oil extended gains after closing at the highest level in more than a year, while silver steadied around $26 an ounce.
Futures on the S&P 500 Index climbed 0.5% as of 8:15 am London time and the Stoxx Europe 600 Index gained 0.8%.
While the MSCI Asia Pacific Index advanced as much
as 0.9%, the MSCI Emerging
Market Index increased 0.6%.
The Bloomberg Dollar Spot Index sinks 0.1% and the euro was little changed at $1.2039.
While The British pound was little changed at $1.3669, the onshore yuan was little changed at 6.458 per dollar. The Japanese yen weakened 0.1% to 105.05 per dollar.
The yield on 10-year Treasuries gained two basis points to 1.12% and the yield on two-year Treasuries climbed less than one basis point to 0.12%.
While Germany’s 10-year yield jumped three basis points to -0.46%, Britain’s 10-year yield advanced two basis points to 0.373%. Japan’s 10-year yield increased less than one basis point to 0.058%.
West Texas Intermediate crude gained 0.8% to $55.20 a barrel and Brent crude gained 1% to $58.05 a barrel. Gold weakened 0.1% to $1,835.88 an ounce.