Global stocks gained on Wednesday as retreat in U.S Treasury yields fueled demand for riskier assets. The MSCI world equity index, which tracks shares in 49 countries, gained 0.4% as the dollar fell on a cautious mood by investors.
- Euro STOXX 600 was up 0.7%, while Frankfurt shares gained 0.9% to a record high on Wednesday.
- London’s FTSE added 1.3% ahead of U.K’s new budget with measures to boost the economy.
- MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.7%, led by shares in China.
- E-mini S&P futures were up 0.6%
- Carmakers stocks added 2.6% to reach the highest since June 2018
- Equity gains came as benchmark U.S. government bond yields continued to stabilize after last month’s sell-off.
- Investors are betting on a strong economy rebound amid ultra-loose monetary conditions that could fuel inflation.
- President Joe Biden’s $1.9 trillion spending package is expected to energize the global economic recovery.
- Investors warn of frothy stock prices, making it hard for equity markets to hang on to gains due to the risk of further sell-off in rates.
Most global stocks are currently gaining. EURO STOXX 50 is up 0.61%, S&P 500 is down 0.81%, FTSE 100 is up 0.99%, Hang Seng Index is up 2.70%
