LONDON (Reuters) – Global stocks rose on Tuesday, as investors expected the U.S. Federal Reserve and other central banks to meet this week holding appropriate policies to help leading a global economic recovery from a pandemic.
European shares expanded a rally that began on Wall Street on Monday and continued into Asia, with the STOXX 600 pan-region index up 0.5%. On Monday, the index hit its highest level in more than a year before ending.
The British FTSE 100 index rose 0.7%, the German DAX 0.6%, the French CAC 40 0.2% and the Italian FTSE MIB index 0.6%.
E-mini futures for the S&P 500 were higher than they traded on the day.
The MSCI Rural World Index, which monitors stocks across 49 countries, rose 0.2% to its highest levels since 25 February.
The Asia-Pacific stock markets index excluding Japan gained 0.65%, led by a 0.8% jump in the Australian S&P / ASX 200 index.
Japan’s Nikkei 225 gained 0.5% to slightly below the 30,000 mark. The broader Topix added 0.65%.
China’s CSI 300 blue-chip index climbed 0.87% and Hong Kong’s Hang Seng gained 0.67%.
“The stock markets have maintained their spirit ahead of Fed’s important news tomorrow,” said Karl Steiner, SEB’s chief quantitative strategy.
On Monday, the S&P 500 and Dow Jones Industrial averages rose both on gains in travel stock as major vaccines in the United States and a conference approval for a $ 1.9 trillion aid bill fueled investment optimism.
U.S. Treasury Department results slipped later Tuesday, as the market looked ahead to government debt auctions and the Fed’s two-day policy meeting, which ends Wednesday.
The 10-year benchmark yield, which reached a year-over-year level of 1.642% last week, was back at 1.125%.
The earlier rise in returns came from investors claiming that Federal Open Market Committee inflation could be expected to rise to indicate that it will start raising rates sooner than expected.
“We anticipate that the FOMC will have a tough time expressing concern over asset markets with the S&P at an all-time high on March 12, despite the U.S. Treasury’s 10Y yields at higher levels. after February 2020, ”said analysts Steve Englander and John Davies at Recorded Standard.
“There has been a focus on the FOMC ‘dot plot’ in the last few days, but unless the FOMC and Fed Chairman (Jerome) Powell push back against normal production levels, it is likely that higher return investors as better data comes in. ”
Fed policymakers are expected to predict that the U.S. economy will grow in 2021 with the fastest pace in decades, while recovering from coronavirus-controlled 2020.
The Bank of England will also meet this week on Thursday and the Bank of Japan will hold a two-day meeting on Friday.
On Wall Street, the Dow Jones industrial average rose 174.82 points, or 0.53%, to 32,953.46, the S&P 500 gained 25.6 points, or 0.65%, to 3,968.94 and the Nasdaq Composite remained unchanged.
Airline shares rose as the companies signaled concrete signs of industrial recovery as vaccine distribution helps spur hobbies.
The prospect of overcoming mail was between the US and Europe.
President Joe Biden ‘s order to vaccinate all adults before May 1 was against a halt to transmission in Germany, France and elsewhere, where the vaccine has been used. Dismissing AstraZeneca amid concerns about possible side effects.
However, Kyle Rodda, an analyst at IG Markets, said a slower economic recovery in Europe was unlikely to be a major deterrent to investors.
“He doesn’t seem to think this is a real threat,” he said. “Investors are cautious, but not worried.”
In currencies, the U.S. dollar held small gains overnight, with a warning to appear ahead of central bank meetings.
The dollar was broadly flat at 109.19 yen, after rising as high as 109.365 on Monday for the first time since June.
The euro remained unchanged at $ 1.1930, holding for an eighth session below the $ 1.20 level.
Bitcoin halted its slide from the high of $ 61,781.83 reached on Saturday, finally trading 1% higher on the day around $ 56,250.
US West Texas intermediate crude for April changed hands at $ 64.74 a barrel, down 1%. Brent crude futures for May were at $ 68.22 a barrel, a 1% loss.
Reciting with Ritvik Carvalho; additional narration by Kevin Buckland and Kane Wu in Tokyo; edited by Larry King