Stocks Rally to 4-Month High; U.S. Futures Gain: Markets Wrap

(Bloomberg) — Stocks set a fresh four-month high in Europe and German equities erased losses for the year after leaders agreed on a landmark recovery plan. Microsoft Corp., Tesla Inc. and Netflix Inc. advanced in U.S. pre-market trading. S&P 500 Index futures pointed to more gains on Tuesday. The dollar […]

(Bloomberg) — Stocks set a fresh four-month high in Europe and German equities erased losses for the year after leaders agreed on a landmark recovery plan.

Microsoft Corp., Tesla Inc. and Netflix Inc. advanced in U.S. pre-market trading. S&P 500 Index futures pointed to more gains on Tuesday. The dollar fell with Treasuries. Silver extended its rally toward $21 an ounce.

Markets across Europe have given a vote of confidence to the 750 billion-euro ($860 billion) stimulus package that also tightens the region’s financial ties. A gauge of risk in Europe’s investment-grade debt dropped to the lowest since February.

Stocks are marching higher globally on the back of more government stimulus and a seemingly unstoppable advance in technology companies that benefit from online shopping during the pandemic. The tech-heavy Nasdaq 100 gauge is poised to add to its 25% gain this year that came in large part to a meteoric advance in Amazon.com Inc., which added $117 billion to its market value just on Monday.

Nasdaq 100 Momentum Is Hottest in 20 Years on Amazon: Chart

“The market, particularly tech stocks, is rallying on both good news and bad news, that tells us it’s all about momentum and not about the facts,” said Michael McCarthy, chief market strategist at CMC Markets Asia Pacific Pty. “There are concerns we could see significant pullbacks before we make further gains, but at the moment you can’t stand in front of the train that is the Nasdaq 100 Index.”

Here are some key events coming up:

Quarterly earnings gather steam, with reports due from Microsoft, Blackstone Group, Roche, Intel, Unilever, Canadian Pacific, Tokyo Steel, Daimler, Hyundai and Mattel.The EIA crude oil inventory report is due Wednesday.U.S. weekly jobless claims come on Thursday.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index rose 0.8% as of 8:18 a.m. New York time.Nasdaq 100 Index futures climbed 0.8%.The Stoxx Europe 600 Index increased 1%.The MSCI Emerging Market Index increased 1.9%.

Currencies

The Bloomberg Dollar Spot Index declined 0.3%.The euro decreased 0.1% to $1.144.The British pound gained 0.4% to $1.2706.The Japanese yen strengthened 0.1% to 107.21 per dollar.The South Korean Won strengthened 0.5% to 1,197.75 per dollar.

Bonds

The yield on 10-year Treasuries gained less than one basis point to 0.62%.Germany’s 10-year yield rose less than one basis point to -0.46%.France’s 10-year yield climbed less than one basis point to -0.16%.Britain’s 10-year yield dipped less than one basis point to 0.147%.

Commodities

West Texas Intermediate crude increased 2.3% to $41.73 a barrel.Silver strengthened 5.2% to $20.94 per ounce.Iron ore rose 1.9% to $108.02 per metric ton.

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