(Bloomberg) — Stocks rose with U.S. 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, U.S. manufacturing data for May will provide further clues on the state of the recovery. S&P 500 and Nasdaq 100 futures rose following a U.S. holiday, while Treasuries dropped and the dollar was steady.
The OPEC+ alliance forecast a tightening global market ahead of Tuesday’s meeting, 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.
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 1.1% as of 10:45 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 was little changedThe euro was little changed at $1.2231The Japanese yen was little changed at 109.60 per dollarThe offshore yuan fell 0.1% to 6.3792 per dollarThe British pound fell 0.2% to $1.4183
Bonds
The yield on 10-year Treasuries advanced two basis points to 1.61%Germany’s 10-year yield was little changed at -0.18%Britain’s 10-year yield advanced two basis points to 0.81%
Commodities
Brent crude rose 2.1% to $71 a barrelSpot gold was little changed
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