European Stocks Hold Near Record Highs as Bond Yields Rise Amid Defense Spending Expectations
Market Highlights:
* European stocks steady near record highs; defense stocks surge.
* German and British bond yields rise on anticipations of increased military spending.
* US stock futures indicate gains at Wall Street open.
* Gold extends gains, reaching $2,910 an ounce.
European Markets:
The Stoxx 600 index remains close to its all-time peak, with defense stocks gaining traction. Rheinmetall AG and Dassault Aviation SA hit new record highs.
German 10-year bund yields hit their highest level in over two weeks, continuing an upward trend. British gilt yields follow suit, supported by robust jobs market data.
Global Markets:
US stock futures point to a positive start for Wall Street, with S&P 500 contracts gaining 0.2%.
Attention is shifting back to the Federal Reserve's interest rate strategy, with Governor Christopher Waller suggesting that recent economic indicators warrant keeping rates on hold.
Commodities and Currencies:
Gold continues its rally, trading near $2,910 an ounce. Goldman Sachs has raised its year-end gold target to $3,100.
The dollar strengthens against G-10 peers, while the Australian dollar stabilizes after a rate cut by the central bank.
Key Events to Watch:
* Tuesday: Canada CPI
* Wednesday: New Zealand rate decision, UK CPI, US FOMC minutes, housing starts
* Thursday: China loan prime rates, Eurozone consumer confidence, G-20 foreign ministers meeting in South Africa
* Friday: Reserve Bank of Australia Governor's testimony, Japan CPI, Eurozone PMI, US PMI, Bank of Canada Governor's speech