(Bloomberg) — European stocks climbed to a four-month high and German equities erased losses for the year after leaders agreed on a landmark recovery plan.
Markets across the region are giving a vote of confidence to the 750 billion euros ($860 billion) stimulus package. Italy’s stock benchmark added 2%, leading gains among local exchanges. A gauge of risk in Europe’s investment-grade debt dropped to the lowest since February. The euro steadied after a recent rally.
Norway’s Adevinta ASA surged 29% after agreeing to buy EBay Inc.’s online classifieds business for $9.2 billion, ending one of the largest auctions of the year. Silver extended gains above $20 an ounce.
Stocks globally are marching higher on the back of more government stimulus and an unstoppable advance in technology companies that benefit from people shopping more online due to the pandemic. U.S. equity futures pointed to more gains on Tuesday after a blistering rally that sent the Nasdaq 100 Index its best gain in three months yesterday.
The tech-heavy gauge — up 25% this year thanks in large part to Amazon.com Inc.’s meteoric advance — is trading 21% above its average price over the past 100 days.
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:
Futures on the S&P 500 Index climbed 0.7% as of 9:47 a.m. London time.The Stoxx Europe 600 Index increased 1.1%.The MSCI Asia Pacific Index rose 1.5%.The MSCI Emerging Market Index rose 1.8%.
The Bloomberg Dollar Spot Index declined 0.2%.The euro was little changed at $1.1446.The British pound rose 0.2% to $1.2691.The offshore yuan was little changed at 6.9898 per dollar.
The yield on 10-year Treasuries gained less than one basis point to 0.61%.The yield on two-year Treasuries rose less than one basis point to 0.15%.Germany’s 10-year yield decreased less than one basis point to -0.46%.Britain’s 10-year yield increased less than one basis point to 0.152%.Japan’s 10-year yield sank one basis point to 0.025%.
West Texas Intermediate crude increased 1.7% to $41.40 a barrel.Brent crude gained 1.8% to $43.98 a barrel.Gold strengthened 0.3% to $1,824 an ounce.
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