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World Stock Markets Hit Two-Week High As Inflation Worries Ease

New York, A gauge of global stocks rose for a third straight session on Thursday to hit its highest level in two weeks, as a dip in government bond yields helped ease inflation worries and provided a boost to stocks, according to Reuters.
Euro zone bond yields fell after the European Central Bank said it was ready to accelerate money-printing to keep a lid on euro zone borrowing costs, using its 1.85 trillion Pandemic Emergency Purchase Program (PEPP) more generously over the coming months to stop any unwarranted rise in debt financing costs.
Germany’s 10-year government bond yield last rose 8/32 in price to yield -0.334%, after reaching as low as -0.367, its lowest level since Feb. 18, and further away from the near one-year high of -0.203% in late February.
Yields on the benchmark 10-year Treasury fell as low as 1.475%, the first time it had fallen below 1.5% in a week before turning slightly higher.
On Wall Street, the easing inflation worry helped support equities, with the highly valued technology sector leading the way higher, up 2.02%. Expensive stocks, many of which are in the tech sector, have been highly sensitive to the rise in yields.
In contrast, shares of bank stocks only gained 0.13%.
The Dow Jones Industrial Average rose 282.47 points, or 0.87%, to 32,579.49, the S&P 500 gained 43.16 points, or 1.11%, to 3,941.97 and the Nasdaq Composite added 267.60 points, or 2.05%, to 13,336.43.
Sentiment was also boosted by weekly jobless claims data, which pointed to a recovering U.S. labor market as vaccine rollouts have helped lead to economic reopenings.
Benchmark 10-year notes last fell 5/32 in price to yield 1.5352%, up from 1.52% late on Wednesday.
European stocks climbed, with the pan-European STOXX 600 index reaching a one-year peak and on track for its fourth straight day of gains. The STOXX 600 index rose 0.46% and MSCI’s gauge of stocks across the globe gained 1.27%.
The dollar was weaker for a third straight day coming off a 3-1/2-month high of 92.506. The dollar index fell 0.291%, with the euro up 0.31% to $1.1962.
Oil prices resumed their climb following two days of declines, buoyed by the brightening economic outlook and a steep decline in U.S. fuel stocks. U.S. crude recently rose 1.77% to $65.58 per barrel and Brent was at $69.17, up 1.87% on the day.

 

Source: Saudi Press Agency

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