Global stocks, US futures rise; silver jumps to eight-year high

Bloomberg

Global stocks and US futures climbed as concern over volatile retail trading receded and China took steps to ease a cash crunch. Silver crossed $30 an ounce for the first time since 2013 in a Reddit-fuelled frenzy.
Europe’s Stoxx 600 Index rallied 1%, led by silver mining companies. The MSCI Asia Pacific Index added 1.7%, the biggest gain in three weeks. The pound rises on expectations the UK will confirm all residents at eligible care homes have been offered a coronavirus vaccine.
Silver futures surged as much as 12% as speculators on Reddit flocked to the metal and a weekend buying binge overwhelmed online sellers of bars and coins. BlackRock Inc.’s iShares Silver Trust, the largest exchange-traded product tracking the metal, recorded an unprecedented $944 million net inflow on January 29.
“Risk sentiment is trying to return to its typical bias,” said Stephen Innes, chief market strategist at Axi, adding investors are attempting to “walk the path of least resistance again.”
Investors mulled data showing factory activity across much of Asia continued to hold up in January even as China’s output showed signs of moderating. Global stocks retreated last week, both on the havoc caused in pockets of the US market by retail investors, as well as on concern that a patchy vaccine rollout is a risk for the nascent global recovery from the
Covid-19 pandemic.
In the US, 10 Republican senators have proposed an
alternative plan for Covid-19 stimulus costing about $600 billion. On the coronavirus front, infections continued to show a slowing trend across many regions of the world,
including in the US, though concerns remain about new variants.
Elsewhere, Indian stocks jumped after the government unveiled an expansionist budget in a bid to spend its way out of the pandemic-induced slump.
Futures on the S&P 500 Index increased as much as 0.6% as of 8:29 am London time and the Stoxx Europe 600 Index declined 1.9%.
While the MSCI Asia Pacific Index advanced by 1.6%, the MSCI Emerging Market Index advanced 1.6%.
The Bloomberg Dollar Spot Index declined 0.1% to 1,130.04 and the euro falls 0.1% to $1.2113.The British pound climbed 0.2% to $1.373 and the Japanese yen was unchanged at 104.76 per dollar.
The yield on 10-year Treasuries gained one basis point to 1.08% and the yield on two-year Treasuries dipped less than one basis point to 0.11%.
While Germany’s 10-year yield advanced two basis points to -0.52%, Britain’s 10-year yield climbed four basis points to 0.325%.
West Texas Intermediate crude increased 0.4% and gold strengthened 0.9% to $1,861.93 an ounce.