LONDON (Reuters) – Global stocks hit record highs on Tuesday, backed by strong economic data from China and the United States, while foreign exchange and bond markets stalled after a month of rapid gains dollar gains and Treasury yields.
Shares measured by the MSCI All Country World index for 49 countries reached an all-time high, as European stocks rebounded with gains in Asia and Wall Street overnight during their first trading session since the holidays. Easter.
The pan-European STOXX 600 index hit a record high after opening in Europe.[.EU]
The profit-taking pushed the Japanese Nikkei down 1% and dragged the Shanghai Composite.
The S&P 500 closed at a record high on Monday and futures fell 0.2% on Tuesday. [.N]
Following the unloaded report of U.S. jobs on Friday, March data showed that service activity hit a record high. China’s services sector has also picked up strength with the sharp rise in sales in three months.
“We believe investors should not be afraid to enter the market at historic highs,” said Mark Haefele, investment director at UBS Global Wealth Management.
“We recommend continuing to position itself for the trade of reflation as the economic recovery gains momentum: data released on Friday showed U.S. non-farm payrolls rose 916,000 in March, the largest increase since August . “
U.S. Treasury yields at 10-year benchmark fell to 1.7093%, while the U.S. dollar has mostly lost a big rebound from strong data and remained at $ 1.1819 per euro per day after recording the sharpest drop since mid-March.
Elsewhere, Swiss lender Credit Suisse tried to draw a line under its exposure to the implosion of hedge fund Archegos Capital, announcing that the debacle would cost it about $ 4.7 billion and that two senior executives would take their jobs.
STABLE STATE
The Treasury’s steady yields and dollar continued to outperform during the first quarter, with an 83-point increase in ten-year yields, the largest quarterly gain in a dozen years and a 3.6% increase in the dollar index, the strongest since 2018..
“The bonds have been set now,” said Omkar Joshi, portfolio manager at Opal Capital Management in Sydney, after a tough and quick sell-off. “I think markets can continue to ignite from here.”
The minutes of the March meeting of the U.S. Federal Reserve, scheduled for Wednesday, are the next focus for bond markets, although they will not address the latest data surprises and markets have come a long way in the past. Fed projections for low-rate years.
Futures on Fed funds have prices on a rise next year, while euro-dollar markets have it up until December.
“What needs to be proven is how the Fed strengthens and reassures its flexible average inflation targeting policy,” said Vishnu Varathan, chief economist at Singapore’s Mizuho Bank.
“The last few weeks of dollar movement reflect markets moving despite what the Fed has said.”
The currencies were fairly quiet during the Asian session and clung to small dollar gains. The Australian dollar traded at $ 0.7647 after the central bank kept policy settings stable, as expected.
The yen was a softer fraction, at $ 110.21, while the pound sterling touched a two-and-a-half-week high of $ 1.3919. [FRX/]
The dollar’s faltering helped oil prices recover some losses suffered on Monday due to concerns that a new wave of COVID-19 infections in Europe and India could reduce energy demand. [O/R]
Brent crude futures rose 1.4% to $ 62.98 a barrel, while U.S. crude rose 1.5% to $ 59.56 a barrel. Gold hit 0.2% to $ 1,732 an ounce. [GOL/]
Reports by Ritvik Carvalho; additional reports by Thyagaraju Adinarayan in London; and Tom Westbrook in Singapore; Edited by Nick Macfie