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China Propels Global Stock Rally to One-Month High: Markets Wrap - Yahoo Canada Finance

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(Bloomberg) -- Global stock markets are starting the week with a bang after China’s influential state media stoked bullish enthusiasm. The dollar index fell for a fifth day and Treasuries dipped.

Banks, construction and insurance shares pushed the Stoxx Europe 600 Index higher, and U.K. homebuilders rallied after a report that the government is considering a temporary increase in the threshold at which buyers pay stamp duty. Copper is on the cusp of erasing this year’s losses after virus-related disruptions tightened supplies.

A front-page editorial in China’s Securities Times on Monday said that fostering a “healthy” bull market after the pandemic is now more important to the economy than ever. Chinese social media exploded with searches for the term “open a stock account,” with bullish sentiment also lifting the yuan. The Shanghai Composite Index closed up 5.7%, the biggest advance since 2015.

The MSCI World Index is now at the highest level since early June, with investors putting their faith in an economic recovery powered by historic government stimulus.

But there’s a long way to go before the economy gets back to normal. Goldman Sachs Group Inc. cut estimates for U.S. growth this quarter and said consumer spending appears likely to stall this month and next. Still, economists led by Jan Hatzius said other economies have proved it’s possible to resume activity and changes in behavior such as wearing masks will help too.

“The willingness of investors to look through the current disruption to an anticipated recovery this quarter is imperiled by still rising virus infection rates,” said Michael McCarthy, a markets strategist at CMC Markets Plc in Sydney.

Here are some key events coming up:

The EIA crude oil inventory report comes Wednesday.All eyes will be on the U.S. weekly jobless claims report on Thursday.Singapore holds its general election on Friday.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index advanced 1.4% as of 6:24 a.m. New York time.The Stoxx Europe 600 Index gained 1.6%.The MSCI Asia Pacific Index jumped 1.7%.The MSCI Emerging Market Index climbed 1.8%.

Currencies

The Bloomberg Dollar Spot Index fell 0.3%.The euro advanced 0.5% to $1.13.The British pound increased 0.1% to $1.2491.The Japanese yen weakened 0.1% to 107.59 per dollar.

Bonds

The yield on 10-year Treasuries advanced two basis points to 0.69%.Germany’s 10-year yield dipped less than one basis point to -0.44%.Britain’s 10-year yield advanced two basis points to 0.208%.

Commodities

West Texas Intermediate crude gained 1.3% to $40.81 a barrel.Gold strengthened 0.2% to $1,775.32 an ounce.LME copper advanced 1.3% to $6,094.50 per metric ton.

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