Global stocks climbed after a two-week decline and stalled amid signs of US futures deal activity and signs of progress towards the virus vaccine.
Travel stocks gained gains in the Stocks Europe 600 index, while contracts rose 1.4% on the Nasdaq 100 index. Before this week’s Federal Reserve meeting, the dollar lows, gold climb and treasuries were little changed.
Immunomedics Inc. shares agreed to buy the cancer drug maker for $ 21 billion after Gilead Sciences Inc. traded more than double the US market in the past. In Japan, SoftBank Group Corp climbed as Nvidia Corp agreed to buy the firm’s chip division Arm Limited for $ 40 billion.
Pfizer Inc. CEO Albert Borla said it is likely that the US will deploy the Kovid-19 vaccine to the public before the end of the year and the company is ready for that scenario. Apparently, AstraZeneca plc and the University of Oxford have launched a UK trial of their vaccine after the study put a stop to concerns about a participant becoming ill.
Global stocks have been closing after the first week of decline since March and traders have been given recent assurances of valuations and volatility in option markets. This week, the Fed expects that its tough stance on policy will continue as investors indicate the global economy is recovering from the epidemic. Strategists at Goldman Sachs Group Inc. and Deutsche Bank AG suggested a recent rebound in the US.
Read why Goldman, Deutsche says US stock sale may end
“With such a powerful monetary impulse through the US and European economy, there is a possibility that the market will be positively surprised again,” said Sebastian Galli, senior strategist at Nordia Investment Funds. “The conclusion is that we should stay in a buy in the dip market.”
Here are some major developments:
- China’s industrial production and retail sales data are due on Tuesday.
- Wednesday sees FOMC policy decisions and news conferences from Chair Jerome Powell.
- The policy decisions of Bank of Japan, Bank Indonesia and Bank of England come on Thursday.
- Friday sees a quadruple witch for US markets when quarterly exposures and options on indices and stocks are on the same day.
These are the main steps in the markets:
- Futures on the S&P 500 index advanced 1.1% at 9:44 as of London time.
- The Stocks Europe 600 index climbed 0.3%.
- The MSCI Asia Pacific Index rose 0.9%.
- The MSCI Emerging Market Index advanced 0.8%.
- The Bloomberg Dollar Spot Index declined 0.2%.
- The euro climbed 0.1% to $ 1.186.
- The British pound gained 0.4% to $ 1.2852.
- The Japanese Yen strengthened 0.2% to 105.95 per dollar.
- The offshore yuan rose 0.2% to 6.8222 per dollar.
- The yield on the 10-year treasury was reduced by one basis point to 0.66%.
- The yield on the two-year treasury was reduced by one basis point to 0.13%.
- Germany’s 10-year yield sank a basis point to -0.49%.
- The UK 10-year yield declined by 0.177%.
- Japan’s 10-year yield fell one basis point to 0.021%.
- West Texas Intermediate crude fell 0.7% to $ 37.14 per barrel.
- Brent crude fell 0.8% to $ 39.62 a barrel.
- Gold gained 0.3% to $ 1,946.61 an ounce.
– assisted by Cormac Mullen