European stocks advanced, tracking gains across Asian markets as trade-war concerns took a back seat to economic optimism following the U.S.
jobs report Friday. The dollar slipped and Treasuries steadied, while most commodities fell.
The Stoxx Europe 600 Index rose for a sixth day, poised for the longest winning streak since October as utility companies set the pace. The MSCI Asia Pacific Index also climbed, with gauges from Tokyo to Sydney jumping. U.S. equity futures joined the rally. The yen strengthened as
political clouds gathered around Japan’s Finance Ministry, run by a stalwart ally of Prime Minister Shinzo Abe. Part of Abenomics focuses on weakening the yen to boost the nation’s exports.
Strong economic indicators seem to have given fresh impetus to the nine-year-old bull market in global equities, which was roiled in recent weeks as President Donald Trump raised the prospect of a full-fledged trade war. With a slew of data due from China this week as well as readings on U.S. inflation and retail sales, investors will be looking for more reasons to keep the party going.
“Our customers are still bullish,” Chris Brankin, chief executive officer at TD Ameritrade Singapore, told Bloomberg TV. “You saw the jobs report last Friday, which was a perfect scenario — you had an uptick in wages, but not too much. Investors have taken that opportunity to buy the market dips and we look for the bull market to continue.”
In Japan, a deepening political scandal is
putting pressure on Finance Minister Taro Aso after his ministry altered documents tied to a controversial land sale. Aso has been Abe’s deputy since he took office in December 2012, and is seen as a key backer of the Abenomics program.
Elsewhere, Bitcoin was set for the first increase in five weekdays and West Texas crude nudged lower after last week’s advance. Emerging-market stocks surged.
Terminal users can read more in our markets blog.
Here are some of the key things happening
- China data on industrial production, retail sales and fixed-asset investment all out on Wednesday are likely to point to slower growth, according to Bloomberg Economics forecasts.
- Key indicators for the Fed dominate the economic agenda in the coming week. Headline inflation may have edged up to 2.2 percent in February from 2.1 percent, though consensus before Tuesday’s report is for core inflation to remain at 1.8 percent.
- The U.S. Treasury will sell $21 billion of 10-year notes and $13 billion 30-year bonds at March 12-13 auctions, plus $28 billion of three-year notes, the most since 2014. Last month’s auction of those maturities drew lackluster demand.
- Prices and factory output are focal points in the euro area. Friday’s second inflation report for February may touch 1.2% from 1.1% the previous month.
- Also this week, Germany’s Angela Merkel is inaugurated to a fourth term, EU27 government officials discuss the European Union’s Brexit position, and U.K. Chancellor of the Exchequer Philip Hammond issues his spring statement.
And these are the main moves in markets:
- The Stoxx Europe 600 Index rose 0.3 percent as of 9:41 a.m. London time with its sixth consecutive advance.
- Futures on the S&P 500 Index increased 0.4 percent to the highest in more than five weeks.
- The MSCI Asia Pacific Index increased 1.7 percent on the largest climb in 16 months.
- The U.K.’s FTSE 100 Index rose 0.1 percent, reaching the highest in more than a week on its sixth consecutive advance.
- The MSCI Emerging Market Index gained 1.3 percent to the highest in more than five weeks.
- The Bloomberg Dollar Spot Index sank 0.1 percent.
- The euro rose 0.1 percent to $1.2325.
- The British pound climbed 0.1 percent to $1.3868.
- The Japanese yen rose 0.3 percent to 106.52 per dollar, the largest advance in more than a week.
- South Africa’s rand rose 0.1 percent to 11.8088 per dollar.
- The MSCI Emerging Markets Currency Index rose 0.2 percent.
- The yield on 10-year Treasuries climbed less than one basis point to 2.90 percent, the highest in more than two weeks.
- Germany’s 10-year yield dipped one basis point to 0.64 percent.
- Britain’s 10-year yield rose less than one basis point to 1.493 percent.
- West Texas Intermediate crude decreased 0.6 percent to $61.68 a barrel.
- Gold fell 0.3 percent to $1,319.50 an ounce, the weakest in more than a week.
— With assistance by Adam Haigh