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Yields on U.S. Treasuries rose along with stocks as reflation trade gained momentum amid President Joe Biden’s big spending plans on the heels of intensification of immunization efforts.
European stocks opened higher, led by banks and miners, as investors assessed the prospects for a stronger-than-expected global recovery, led by US stock index futures, being mixed, with traders rating the fallout from the implosion of Archegos Capital Management.
Ten-year T-bill yields rose 1.77% and the five-year rate hit its highest point in 13 months, ahead of Biden unveils an additional $ 3 trillion in stimulus with an infrastructure slant. The United States hit a three-day record of 10 million shots over the weekend, according to the Bloomberg Vaccine Tracker, and plans to offer vaccines to 90% of adults.
Investors focused on the strength of the recovery and inflation risks as governments increased spending to stimulate growth. Positive vaccine news contributes to risk appetite, with real-world study from Pfizer Inc. and Moderna Inc. showing their doses effectively prevented coronavirus infections, U.S. government researchers said.
Lily: Archegos drama barely shakes a ‘risk-drunk’ market
Oil has fluctuated as traders eagerly awaited this week’s OPEC + meeting, with speculation that new demand concerns will push the group to keep production under control. Meanwhile, the Suez Canal reopened to traffic after the container ship blocking it was freed.
Some key events to watch this week:
- President Biden is expected to unveil his infrastructure program on Wednesday.
- EIA Crude Inventory Report Wednesday.
- OPEC + is meeting on Thursday to discuss production levels for May.
- China Caixin PMI expected Thursday.
- US Employment Report for March Friday.
- Good Friday begins Easter weekend in countries like the US, UK, France, Germany, Australia, and Canada.
Here are some of the main developments in financial markets:
Stocks
- Futures contracts on the S&P 500 index fell 0.1% at 9:16 a.m. London time.
- The Stoxx Europe 600 index gained 0.5%.
- The MSCI Asia Pacific index fell 0.1%.
- The MSCI Emerging Markets Index rose 0.5%.
Currencies
- The Bloomberg Dollar Spot Index jumped 0.2%.
- The euro fell 0.2% to $ 1.1738.
- The British pound plunged 0.1% to $ 1.3755.
- The ground yuan was little changed at 6.571 to the dollar.
- The Japanese yen weakened 0.4% to 110.26 per dollar.
Obligations
- The yield on 10-year Treasuries rose six basis points to 1.77%.
- The yield on two-year Treasuries rose one basis point to 0.15%.
- Germany’s 10-year yield climbed five basis points to -0.27%.
- The UK 10-year yield gained five basis points to 0.839%.
- Japan’s 10-year yield gained two basis points to 0.091%.
Basic products
- West Texas Intermediate crude fell 0.2% to $ 61.41 per barrel.
- Brent fell 0.2% to $ 64.86 a barrel.
- Gold weakened 0.8% to $ 1,698.31 an ounce.
– With the help of Michael Tobin, Claire Ballentine, Olivia Raimonde and Emily Barrett
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