Stocks Climb With U.S. Futures on Easing Lockdowns: Markets Wrap
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European stocks rose alongside U.S. equity futures on Tuesday, with sentiment buoyed as more economies moved toward easing their coronavirus lockdowns. Oil gained for a fifth day, on course for its longest winning streak in nine months.
Almost every sector climbed as the Stoxx Europe 600 advanced after slumping a day earlier and missing out on a late rebound for U.S. stocks. Energy shares led the rally amid the recovery in crude, with Total SA among the big winners even after reporting a 35% plunge infirst-quarter profit. BNP Paribas SA also rose despite setting aside cash to cover problem loans and warning full-year earnings will take a pounding from the pandemic. S&P 500 futures climbed as the dollar strengthened a third day.
The euro fell as investors scrutinized averdict from Germany’s top judges over the legality of European Central Bank stimulus. They ruled that some actions taken by the country’s Bundesbank to participate in the asset purchase program were unconstitutional. Bonds in the region turned lower led byItalian debt.
“There is reaction among euro area government bonds, but this ruling in Germany is not definitive for sentiment today on global markets,” said Stephen Gallo, head of European FX strategy at the Bank of Montreal. “Signs that lockdowns aren’t being severely re-tightened are setting the tone.”
22,335 in U.S.Most new cases today
-17% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.064 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-0.5% Global GDP Tracker (annualized), March