Stocks Climb Globally While Dollar Slips With Gold: Markets Wrap

Equities advanced worldwide alongside U.S. index futures after President Donald Trump said he’s considering a tax cut oncapital gains. Gold slipped for a third day.

From industrial goods to health-care stocks, a broad rally swept the Stoxx Europe 600 Index to its best gain in a week. Momentum carried forward from Asia, where a benchmark also jumped the most in a week. S&P 500 futures rose, signaling the benchmark was on course to approach its all-time closing high from February. Treasuries and core European bonds edged lower.

The dollar slipped after two days of gains against its major peers. The euro extended its increase after a Germangauge of investor confidence unexpectedly surged.

Investors are taking some comfort from Trump’s comment onpotential tax cuts, strong Chinese economic data and fallinghospitalizations in California and New York. They’re driving an MSCI global stocks benchmark toward erasing its 2020 loss today.

“Equity has never looked cheaper compared to fixed income and the like,” Jun Bei Liu, portfolio manager at Tribeca Investment Partners, said in a Bloomberg TV interview. “If you want any return, any yield, any income or even any growth you have to go to equities.”

Here are some key events coming up:

  • Earnings include E.ON, Deutsche Telekom, Carlsberg, Tencent and JD.com.
  • New Zealand’s central-bank policy decision is due on Wednesday.
  • U.S. CPI for July is scheduled for Wednesday.
  • China releases a slew of data for July on Friday, including industrial production and retail sales.
  • U.S. retail sales are expected Friday, with a smaller increase forecast for July than in the prior two months.

These are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index gained 2% as of 10:19 a.m. London time.
  • Futures on the S&P 500 Index climbed 0.7%.
  • Germany’s DAX Index jumped 2.5%.
  • The MSCI Asia Pacific Index advanced 1.2%.

Currencies

  • The Bloomberg Dollar Spot Index declined 0.2%.
  • The euro jumped 0.4% to $1.1781.
  • The British pound increased 0.2% to $1.3097.
  • The Japanese yen weakened 0.1% to 106.05 per dollar.
  • New Zealand’s dollar advanced 0.3% to $0.661.

Bonds

  • The yield on 10-year Treasuries gained two basis points to 0.60%.
  • The yield on two-year Treasuries climbed less than one basis point to 0.13%.
  • Britain’s 10-year yield advanced three basis points to 0.162%.
  • Germany’s 10-year yield increased two basis points to -0.51%.

Commodities

  • West Texas Intermediate crude gained 1.3% to $42.48 a barrel.
  • Gold weakened 1.6% to $1,994.43 an ounce.
  • Silver weakened 3% to $28.24 per ounce.
  • LME zinc decreased 0.1% to $2,393.50 per metric ton, the lowest in a week.

— With assistance by Andreea Papuc

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