Global stocks on Friday sent the US equity index to an all-time high, following surprisingly strong US economic data. Yields declined on the benchmark 10-year Treasury notes.
MSCI Inc.’s Asia-Pacific gauge rose but is more modest than the Wall Street rally. China outperformed, showing the country’s economy so strong in the first quarter after data that consumer spending strengthened, suggesting a more balanced recovery.
European equity contracts climbed and US futures hit a low following strong S&P 500 and Nasdaq 100 strong retail sales and jobless claims data. Citigroup Inc. And even after Bank of America Corp. beat its business-revenue forecast, bond yields fell financially.
Traders suggested that foreign purchases and geopolitical risk may have contributed to the Treasury’s rally, with many investors positioned for further weakness. The US dollar halted a series of declines.
Equities have raised new peaks amid rebound in global growth, confidence in continued central bank policy support and some upbeat corporate earnings. Rally in government bonds continues to highlight risks, however, in some countries Kovid-19 infections suffer spikes and vaccine rollout failures.
The bond market boom is “one of the more confusing dynamics in the markets” at the moment, said Michael Arronne, investment strategist at State Street Global. Advisor. “Part of it is that you saw 10 years move very fast in a very short period of time, so it may be a pause before it starts to rise again.”
Data from China showed that GDP climbed to a record 18.3% in the first quarter compared to a year earlier, but that quarter-on-quarter growth was reduced to 0.6%. Retail sales beat expectations while industrial production declined.
Elsewhere, optimism about the recovery of the oil epidemic led to the biggest weekly gains since early February. Copper is on the course for the best week in nearly two months.
These are some of the main steps in the financial markets:
- S&P 500 futures dipped 0.1% in London until 6:58 am. The index rose 1.1%.
- Japan’s Topics index rose 0.1%.
- The Shanghai Composite Index rose 0.9%.
- The Hang Seng index had climbed 0.8%.
- South Korea’s Cospi index climbed 0.1%.
- Australia’s S&P / ASX 200 index was down 0.1%.
- Euro stocks 50 futures added 0.2%.
- There was little change in the Bloomberg Dollar Spot Index.
- The euro stood at $ 1.1970.
- The Japanese Yen was at 108.81 per dollar.
- The offshore yuan was slightly changed at 6.5282 per dollar.
- The yield on the 10-year treasury was held at 1.58%.
- Australia’s 10-year yield was down four basis points to 1.73%.
- West Texas Intermediate crude rose 0.5% to $ 63.80 a barrel.
- Gold is trading around $ 1 to $ 765 an ounce.
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