Bloomberg
Global stocks climbed on renewed hopes for stimulus, progress on vaccinations and receding concerns about volatile retail trading. Silver pulled back from an eight-year high.
Europe’s Stoxx 600 Index gained around 1%, with technology shares outperforming ahead of earnings from Amazon.com Inc. and Google’s parent Alphabet Inc. BP Plc dropped after posting results that fell short of expectations on weak fuel sales. Siemens Energy AG edged lower following an announcement that it will cut roughly a sixth of workers from its gas and power division.
S&P 500 futures rise after Monday’s surge. GameStop Corp. retreated in pre-market trading alongside silver as the retail frenzy showed indications of cooling. Treasuries dipped alongside the dollar and oil climbed. Asian stocks advanced.
Signs of progress towards fresh US stimulus and
expanding vaccination programs have boosted sentiment. Fears that speculative buying stirred up on social media could derail the equity bull market are also receding. The long end of the Treasury curve hit its steepest since 2016, underscoring ongoing confidence in a global recovery.
“We remain positive on risky assets. A combination of easy monetary and fiscal policy when the recovery is gaining momentum should bode well for them,†said Mohit Kumar, strategist at Jefferies International. “While it is still not clear whether the retail-led volatility is behind us, our view is that the impact should be temporary.â€
President Joe Biden intends to continue pushing for a large pandemic relief bill, even if he has to bypass Senate Republicans, his press secretary said, hours after what one Republican senator called a “very productive†meeting on stimulus options.
Futures on S&P 500 Index climbed 0.8% as of 9:04 am London time and the Stoxx Europe 600 Index rises 1.1%.
While the MSCI Asia Pacific Index gained 1.3%, the MSCI Emerging Market Index rise 1.4%.
The Bloomberg Dollar Spot Index falls 0.3% and the euro jumped 0.2% to $1.2081.
The British pound rises 0.3% to $1.3703 and the onshore yuan strengthened 0.3% to 6.452 per dollar.The Japanese yen strengthened 0.1% to 104.87 per dollar.
While the yield on 10-year Treasuries gained two basis points to 1.10%, the yield on two-year Treasuries climbed less than one basis point to 0.11%.
Germany’s 10-year yield climbed two basis points to -0.50% and Britain’s 10-year yield jumped three basis points to 0.351%.Japan’s 10-year yield dipped one basis point to 0.054%.
While West Texas Intermediate crude gained 1.2% to $54.21 a barrel, Brent crude increased 1.2% to $57 a barrel and gold weakened 0.6% to $1,849.11 an ounce.