Stocks, futures surge on positive data; oil jumps

Bloomberg

Stocks rise with US equity futures, and commodities including oil jumped, as a string of positive economic readings spurred optimism in the
recovery from the pandemic.
The Stoxx Europe 600 Index gained 1%, led higher by cyclical shares, as data showed that euro-area factories are struggling to keep up with surging demand and joblessness in Germany fell. Reports signaling that manufacturing grew in Asia in May despite Covid-19 flareups helped send a gauge of Asia-Pacific equities to the highest in over a month.
Up next, US manufacturing data for May will provide further clues on the state of the recovery. S&P 500 and Nasdaq 100 futures rose following a
US holiday, while Treasuries dropped and the dollar was steady.
The Opec+ alliance forecast a tightening global market, sending WTI crude futures to their highest in more than two years. Commodities from iron ore to copper also pushed higher.
Global stocks are starting the new month near record highs, underpinned by the recovery from the health crisis and ample liquidity. Still, the jump in commodities prices is stoking concerns that rising price pressures could prompt central banks to withdraw support earlier than anticipated. Traders are awaiting key American jobs data later in the week to help assess the path of the rebound.
“The inflation outlook is a risk because it is so unknown at the moment, and it will take a number of months to really get a true idea of whether we will see that inflation be persistently higher or not,” Kerry Craig, JPMorgan Asset Management global market strategist, said on Bloomberg TV.
The Stoxx Europe 600 rises 0.9% as of 9:42 am London time and the MSCI Asia Pacific Index also climbs by 0.3%. The MSCI Emerging Markets Index rises 0.6%
While the Bloomberg Dollar Spot Index was little changed, the euro was little changed at $1.2222 and the Japanese yen was little changed at 109.59 per dollar.
The offshore yuan was little changed at 6.3752 per dollar and the British pound falls 0.2% to $1.4184.
While the yield on 10-year Treasuries advanced two basis points to 1.62%, Germany’s 10-year yield was little changed at -0.18% and Britain’s 10-year yield advanced two basis points to 0.81% Brent crude rises 2.1% to $71 a barrel and spot gold was little changed.