Global shares gained on Wednesday, with European indexes echoing positive moves in Asia, as a retreat in U.S. Treasury yields fuelled demand for riskier assets and weakened the dollar.
The Euro STOXX 600 added 0.7, with Frankfurt shares climbing 0.9 to a record high and Londons FTSE adding 1.3 before the UKs new budget is introduced, with measures to boost the economy.
Carmakers led the gains, adding as much as 2.6 to reach their highest since June 2018.
MSCIs broadest index of AsiaPacific shares outside Japan was up 1.7, led by shares in China.
Emini SP futures were up 0.6.
The gains for equities came as benchmark U.S. government bond yields continued to stabilise after last months selloff.
The yield on 10year Treasury notes stood at 1.41, down from last weeks oneyear high of 1.61, before a slew of U.S. economic data set for release later this week. Bond yields rise when prices fall.
Surging yields across the world, fuelled by moves in Treasuries, have buffeted financial markets in recent weeks. Investors were betting a strong U.S. economic rebound amid ultraloose monetary conditions would fuel inflation.
Still, optimism that more imminent U.S. stimulus will energise the global economic recovery buoyed stocks, with U.S. President Joe Biden close to passing a 1.9 trillion spending package.
We are caught in the middle of this crossfire between a more positive macro situation, and some excesses that have been developing here and there, said Olivier Marciot, senior…