Stocks are on the rise, following gains in Asian markets and a tech-driven rebound spreading globally. As reported by Bloomberg, Europe’s Stoxx 600 index rose 1%, with the technology sector leading the way. Futures for the S&P 500 and the dollar remained flat, while the MSCI Asia Pacific Index saw its biggest climb in nearly a month. Treasury yields also saw an uptick.
The resurgence in risk appetite comes after major technology companies sparked a rebound on Wall Street. Additionally, the European Central Bank is expected to lower interest rates by a quarter-point to 3.5%, although policymakers remain cautious due to lingering concerns about inflation.
Over in corporate news, OpenAI is in talks to secure $6.5 billion from investors at a valuation of $150 billion, while Nvidia Corp.’s CEO highlighted supply chain challenges. Alimentation Couche-Tard Inc. is looking to enhance its takeover proposal for Seven & i Holdings Co. to kickstart discussions.
Oil prices continued to climb as Hurricane Francine impacted oil-producing areas in the Gulf of Mexico, prompting traders to cover bearish positions. Gold also stayed strong above $2,515 per ounce.
Looking ahead, key events to watch for this week include the ECB rate decision, US initial jobless claims and PPI data, Eurozone and Japan industrial production numbers, and the U. Michigan consumer sentiment report.
In the markets:
– Stoxx Europe 600 rose 1%
– S&P 500 futures, Nasdaq 100 futures, and Dow Jones futures were flat
– MSCI Asia Pacific Index climbed 1.5%
– MSCI Emerging Markets Index saw a 1.2% increase
On the currency front:
– Bloomberg Dollar Spot Index remained steady
– Euro held firm at $1.1017
– Japanese yen slipped to 142.68 per dollar
– Bitcoin and Ether saw modest gains
Bond yields saw an uptick, with the yield on 10-year Treasuries, Germany’s 10-year yield, and Britain’s 10-year yield all advancing. Commodities also performed well, with Brent crude, and spot gold both rising.
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