Stocks advance globally while dollar falls with gold

Bloomberg

Equities rise globally alongside US index futures after President Donald Trump said he’s considering a tax cut on capital gains. Gold slipped for a third day.
From carmakers to energy stocks, a broad rally swept the Stoxx Europe 600 Index higher. Momentum carried forward from Asia, where a benchmark gained the most in a week, and from the US, after coronavirus hospitalisations fell in the most populous states even as global cases topped 20 million. S&P 500 and Nasdaq 100 futures rose, putting the benchmark on course to approach its all-time high from February.
The dollar slipped after just two days of gains against its major peers. The euro gained versus the greenback before the release of Germany’s
ZEW survey. Treasuries and core European bonds edged lower. The risk-on sentiment weighed on gold.
Investors are taking some comfort from Trump’s comment on potential tax cuts, strong Chinese economic data and falling hospitalisations in California and New York. Looking past the accelerating rate of global infections, they’re driving a global stocks benchmark towards erasing its 2020 loss on Tuesday.
“Equity has never looked cheaper compared to fixed income and the like,” Jun Bei Liu, portfolio manager at Tribeca Investment Partners, said in a Bloomberg TV interview. “If you want any return, any yield, any income or even any growth you have to go to the equities.”
The Stoxx Europe 600 Index gained 1.8% as of 9:45 am London time and futures on the S&P 500 Index climbed 0.6%.
While Germany’s DAX Index gained 2.3%, the MSCI Asia Pacific Index advanced 1.1%.
While the Bloomberg Dollar Spot Index declined 0.1%,
the euro advanced 0.2% to $1.1765 and the British pound climbed 0.1% to $1.308.
The Japanese yen weakened 0.2% to 106.15 per dollar and New Zealand’s dollar jumped 0.3% to $0.6614.
While the yield on 10-year Treasuries gained two basis points to 0.59%, the yield on two-year Treasuries climbed less than one basis point to 0.13%.
While Britain’s 10-year yield advanced three basis points to 0.156%, Germany’s 10-year yield increased one basis point to -0.51%.
While West Texas Intermediate crude gained 1.2% to $42.45 a barrel, gold weakened 2% to $1,987.43 an ounce. Silver weakened 3.7% to $28.06 per ounce and LME zinc also decreased 0.4% to $2,388 per metric ton.