(Bloomberg) — Stocks advanced alongside U.S. equity futures as plans for more economic stimulus revived investor sentiment. A gauge of European corporate debt risk fell the most in two months.
The Stoxx Europe 600 Index rallied the most in a month, while American Airlines Group, Norwegian Cruise Line Holdings and Carnival Corp. notched some of the biggest gains in U.S. pre-market trading. The dollar weakened against a group of its major peers. The pound strengthened versus the euro after positive talk around the Brexit negotiations renewed hopes for a deal.
Government stimulus has been a key feature of the global equities rally, despite soaring unemployment and signs that a second wave of the virus has started to emerge. Now there are signals that more economic support is on the way.
The Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of its push to spur the world’s largest economy back to life, according to people familiar with the plan. On top of that, the Federal Reserve will start buying individual corporate bonds.
“The size and the pace of Fed balance sheet expansion is something that will put a floor under global equity markets,” Stephen Gallo, BMO Capital Markets head of European FX strategy, said on Bloomberg TV.
Elsewhere, oil climbed toward $38 a barrel in New York amid signs of improving demand and declining production.
These are some key events coming up:
Federal Reserve Chairman Jerome Powell delivers his semi-annual policy report to Congress Tuesday.Policy decisions from the Bank of England and the Swiss National Bank are due later this week.The New York Stock Exchange may allow a limited number of market makers to return to its historic trading floor Wednesday.
Here are some of the main moves in financial markets:
Stocks
Futures on the S&P 500 Index climbed 1.1% as of 7:16 a.m. New York time.Nasdaq 100 Index futures advanced 1.1%.The Stoxx Europe 600 Index jumped 2.6%.The MSCI Emerging Market Index climbed 2.2%.
Currencies
The Bloomberg Dollar Spot Index declined 0.2%.The euro decreased 0.1% to $1.131.The British pound gained 0.3% to $1.264.The Japanese yen was little changed at 107.28 per dollar.The South Korean Won strengthened 0.8% to 1,207.10 per dollar.
Bonds
The yield on 10-year Treasuries climbed two basis points to 0.74%.The yield on two-year Treasuries advanced one basis point to 0.20%.Germany’s 10-year yield advanced three basis points to -0.42%.Britain’s 10-year yield advanced two basis points to 0.228%.
Commodities
Brent crude gained 1.8% to $40.44 a barrel.Gold strengthened 0.1% to $1,727.36 an ounce.LME aluminum climbed 1% to $1,593.50 per metric ton.
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