(Bloomberg) — Stocks rose with U.S. equity futures, and commodities including oil advanced, as optimism mounted over the economic recovery from the pandemic. The dollar slipped.
The Stoxx Europe 600 Index gained 0.5%, led higher by cyclical shares, in the wake of a report that the European Union plans to lift all quarantine requirements starting in July. The pound jumped to a three-year high as traders cheered the rollout of vaccines in the U.K.
MSCI Inc.’s gauge of Asia-Pacific equities climbed to the highest level in over a month, with sentiment aided by reports signaling manufacturing grew in Asia in May despite Covid-19 flareups. S&P 500 and Nasdaq 100 futures rose modestly following a U.S. holiday. Treasuries climbed.
Oil jumped after the OPEC+ alliance forecast a tightening market. Commodities from iron ore to copper also pushed higher, a reminder of the rising costs that are stoking concerns about faster inflation and possible reductions in stimulus.
Global stocks are starting the new month near record highs, underpinned by the recovery from the health crisis and ample liquidity. Still, concerns linger 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.
Here are key events to watch this week:
OPEC+ meets to review oil production levels TuesdayPhiladelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak WednesdayU.S. employment report for May on Friday
These are some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.5% as of 8:15 a.m. London timeThe MSCI Asia Pacific Index rose 0.4%The MSCI Emerging Markets Index rose 0.6%
Currencies
The Bloomberg Dollar Spot Index fell 0.1%The euro was little changed at $1.2234The Japanese yen was little changed at 109.51 per dollarThe offshore yuan was little changed at 6.3758 per dollarThe British pound rose 0.2% to $1.4240
Bonds
The yield on 10-year Treasuries advanced three basis points to 1.62%Germany’s 10-year yield advanced two basis points to -0.17%Britain’s 10-year yield advanced three basis points to 0.82%
Commodities
Brent crude rose 1.3% to $70 a barrelSpot gold rose 0.3% to $1,913 an ounce
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