Global stock markets stabilized after Monday’s losses, and investors have enough confidence in the economic recovery and explosion of vaccines to buy the decline in some risky assets.
The Stoxx 600 index in Europe is higher than the energy stocks and travel companies that are the best. Commodity prices rose as the dollar stabilized, while Treasury benchmark yields rose higher. After Bitcoin fell sharply on Monday, the largest cryptocurrency fell above $ 36,000.
The mood across the market was slightly positive and investors continue to assess how the rise in treasury yields is changing the financial landscape. Although progress with a vaccine gives reason to be hopeful, there is still concern about the speculative excess and froth that is driving stock markets to overall highs amid a pandemic.
“A new, more speculative, more volatile phase of the bull market has begun,” said Julian Emanuel, chief equity and derivatives strategist at BTIG LLC. “The depth of such withdrawals in 2021 depends largely on returns.”
In Asia, China’s CSI 300 index rose to a 13-year high, driven by an increase in financial and security stocks. The yuan reached its highest level since 2018, against a basket of trading partners’ currencies with optimal growth prospects.
Here are some key events:
These are some of the key movements in markets:
Stocks
- Futures on the S&P 500 index rose by 0.1% from 8:28 am London time.
- The Stoxx Europe 600 index rose 0.2%.
- The MSCI Asia Pacific Index rose 0.3%.
- The emerging market MSCI index rose 0.2%.
Currencies
- The Bloomberg Dollar Spot Index fell 0.1% to 1,126.04.
- The euro changed little at $ 1.2158.
- The British pound rose 0.2% to $ 1.3547.
- The Japanese yen strengthened 0.1% to 104.20 per dollar.
Effects
- The yield on 10-year treasury rose by less than one basis point to 1.15%.
- The return on two-year treasury was unchanged at 0.14%.
- The ten-year yield in Germany rose one basis point to -0.49%.
- Britain’s 10-year yield climbed one basis point to 0.32%.
Commodities
- West Texas Intermediate crude rose 0.8% to $ 52.60 a barrel.
- Gold strengthened 0.7% to $ 1,857.30 per ounce.