Stocks rise with US futures; Gold, Oil Advance: Wrap Markets

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(Bloomberg) – Stocks climbed in Europe alongside US stock futures on Monday as investors found reasons to encourage companies to reopen in major economies and after the stock slump last week. Crude oil has advanced.

The Stoxx Europe 600 Index rose due to gains in mining and travel stocks, including airlines IAG SA and Ryanair Holdings Plc. S&P 500 contracts rose after the worst week in the underlying gauge since mid-March, and in the wake of news that the California economy is now 75% open after virus restrictions have been lifted been relaxed. Apple Inc. will open more than 25 stores in the United States this week, nearly 100 worldwide. Stock indexes in Japan, Hong Kong and South Korea all posted modest increases.

Gold traded at its highest level in seven years, while West Texas oil surpassed $ 30 a barrel for the first time in two months, producers in the United States and elsewhere continuing. to reduce their activities. Gilts rose as traders bet the Bank of England would cut its benchmark interest rate below zero in December.

Investors are entering a new week, apparently cheered by the hope of a rebound and the concealment of data that paints a stark picture of the damage from coronavirus. Federal Reserve Chairman Jerome Powell has said the US economy will recover from the coronavirus pandemic, but the process could extend to the end of next year and depend on the delivery of a vaccine. Several European countries have ended short selling bans as they continue to report the lowest number of daily deaths from the virus since March.

“With the worst of the pandemic probably behind us, the central bank-backed stock markets should not revisit their lows,” said Seema Shah, chief strategist at Principal Global Investors. “However, while the resumption of dynamics could well bring risk assets a little more in the short term, the lukewarm economic recovery and the deep uncertainty about the outlook for the virus argue against a pivot towards a more risky positioning. “

Elsewhere, industrial metals climbed after China announced directives to revive major infrastructure projects. The currencies of ore and crude oil exporters have strengthened from the Norwegian krone to the Australian dollar.

These are the main movements on the markets:

Stocks

The Stoxx Europe 600 index climbed 2.1% at 10:26 a.m. London time. The S&P 500 indexes rose 1.5%. The German DAX index jumped 2.9% The MSCI Asia Pacific index rose 0.1%.

Currencies

The Bloomberg Dollar Spot index changed little, the euro fell 0.1% to $ 1.0805, the British pound changed little to $ 1.2112, the Japanese yen fell 0.2% to 107 .27 per dollar, the Mexican peso appreciated 0.4% to 23.8598 per dollar.

Obligations

The yield on 10-year Treasury bills fell by less than one basis point to 0.64%. The 10-year yield on Germany fell by two basis points to -0.55%. Britain’s 10-year yield fell two basis points to 0.208%. Portugal’s 10-year yield fell four basis points to 0.838%.

Raw materials

West Texas Intermediate crude oil rose 5.7% to $ 31.10 a barrel. Gold strengthened 1% to $ 1,761.16 an ounce. Iron ore rose 3.3% to $ 93.51 a metric ton.

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