Stronger U.S Equity Futures, Declining Bond Yields Aid Recovery in Global Stocks

Stronger U.S Equity Futures, Declining Bond Yields Aid Recovery in Global Stocks

Euro STOXX 600 rose 0.1% on Tuesday after Monday, gains pushing the German’s index to a record high as other global stocks also rose. The rise in global stocks was supported by stronger U.S equity futures and a decline in the U.S and European bond yields.

U.S 10-year Treasury bond yields eased to 1.5472%, while German’s 10-year government bond yield fell by two basis points to -0.298%

NASDAQ futures rose 1.6% while S&P 500 futures gained 0.8%.

Japan’s Nikkei was up 1% as consumer goods companies and property developers gained on expectations of economic recovery.

Australian S&P/ASX 200 index rose 0.5% despite falls in the tech stocks.

The Shanghai Composite index fell 1.8% amid fears of tightening policy. 

South Korea’s KOSPI fell 0.7%, the fourth straight session as tech stocks sold off.

 On Monday, U.S Treasury Secretary Janet Yellen hinted of a “very strong” economic recovery after President Joe Biden’s anticipated aid package as she promised measures to deal with inflation.

Investors are conflicted over whether the U.S stimulus would facilitate global economic recovery from the Covid-19 impacts amid potential inflation.Global stocks are currently mixed. S&P 500 is down 0.54%, Euro STOXX 600 is up 0.73%, ASX 200 is up 0.47%, SSE Composite Index is down 1.82%

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