(Bloomberg) — European stocks opened higher as investors looked past turmoil in vaccine rollouts toward the prospects for economic recovery in the region.
The Stoxx 600 Index rose 0.4%, with virtually all sectors in the green, including travel and leisure shares which have erased their pandemic losses. Germany, France and Italy decided Monday in a coordinated step to suspend the AstraZeneca Plc vaccine, spurring some doubts on the pace of rollouts in the region.
U.S. equity futures fluctuated a day after the S&P 500 Index and Dow Jones Industrial Average closed at records. Markets saw modest gains in Japan and China, where investors were watching for a possible broader crackdown on the internet sector.
Treasury yields were steady ahead of the Federal Reserve’s policy statement on Wednesday. Oil retreated for a third day, while the dollar edged higher.
With the global economy increasingly on a path out of the pandemic, focus turns to the Fed’s communications on Wednesday, which will include fresh economic and interest-rate projections. Reflation trades stand to benefit if the central bank maintains a hands-off approach to the recent rise in yields. Bets on a faster economic recovery have already helped push one market gauge of inflation to its highest level since 2008, and a renewed climb in yields could spur the rotation from growth to value stocks.
“Fundamentally, the focus will still be on the growth recovery in the coming months and macropolicy — both fiscal and monetary — will continue to be supportive,” Cecilia Chan, chief investment officer for Asia Pacific at HSBC Asset Management, told Bloomberg TV.
Looking further ahead, investors are assessing the potential for an infrastructure spending package and tax increases in the U.S.
Elsewhere, Bitcoin traded around $55,000, down from a weekend peak above $61,000.
These are some key events this week:
Fed Chair Jerome Powell will likely reaffirm his steady policy stance at the Fed policy meeting Wednesday.Bank of England rate decision Thursday. BOE is expected to leave monetary policy unchanged.Bank of Japan monetary policy decision and Governor Haruhiko Kuroda briefing Friday.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index were little changed at 8:17 a.m. London time.The Stoxx Europe 600 Index increased 0.4%.The MSCI Asia Pacific Index gained 0.6%.The MSCI Emerging Market Index rose 0.7%.
Currencies
The Bloomberg Dollar Spot Index jumped 0.1%.The euro was little changed at $1.1925.The British pound sank 0.5% to $1.3836.The onshore yuan was little changed at 6.5 per dollar.The Japanese yen weakened 0.1% to 109.22 per dollar.
Bonds
The yield on 10-year Treasuries fell one basis point to 1.60%.The yield on two-year Treasuries was unchanged at 0.15%.Germany’s 10-year yield was unchanged at -0.33%.Britain’s 10-year yield was unchanged at 0.798%.Japan’s 10-year yield sank one basis point to 0.105%.
Commodities
West Texas Intermediate crude fell 0.8% to $64.89 a barrel.Brent crude fell 0.8% to $68.36 a barrel.Gold was little changed at $1,732.05 an ounce.
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