Stocks Rally on Earnings Momentum and Yield Stability
As the earnings season intensifies, global markets are witnessing a positive trend with stocks rising. The Stoxx Europe 600 reached a record high, while Asian stocks surged to a seven-week peak. Futures on the S&P 500 and Nasdaq 100 also gained ground.
The return to calm in global markets follows volatility sparked by trade tensions. Investors are now focusing on interest rates, economic growth, and corporate earnings. The 10-year Treasury yield remains low, hovering near its December lows. This stability in yields supports risk-taking sentiment.
In Europe, Societe Generale SA and AstraZeneca Plc reported strong earnings, leading to stock gains. However, Kering SA slipped after Gucci's creative director departure. Economic data from Germany showed a surge in factory orders, indicating potential improvement.
Key events this week include Eurozone retail sales, the Bank of England's rate decision, and the US nonfarm payroll report.
Market Movements
* Stocks: Stoxx Europe 600 +0.5%, S&P 500 futures +0.1%
* Currencies: Bloomberg Dollar Spot Index +0.2%, Euro -0.3%, British pound -0.3%
* Cryptocurrencies: Bitcoin +1.3%, Ether +1.8%
* Bonds: 10-year Treasury yield +0.02%, Germany's 10-year yield +0.01%, Britain's 10-year yield +0.01%
* Commodities: Brent crude +0.2%, Spot gold -0.4%