© Reuters. TV people wait for the market to open in front of a big screen showing stock prices on the Tokyo Stock Exchange
By Simon Jessop
LONDON (Reuters) – Global equities rose as oil fell on Thursday as investors diverged on whether to bet on economic recovery in the US and other developed markets or worry about an increase in COVID-19 cases in India and elsewhere.
With the rise in vaccination rates and the pandemic-tired citizens embracing more freedoms to stimulate growth in some major economies, the widest global range of MSCI shares has risen 0.3%, trading at 1%. from its last level of closure, after a recent mini-sale.
“The summer earnings season will continue to test the trajectory of recovery, but until then, vaccine launches and economic reopening will be the main triggers for future growth in this race,” Amundi investment director Pascal Blanque said in a statement. customers.
As the European Central Bank holds a political meeting, Europe’s top indices have seen stronger gains. The broad STOXX Europe 600 rose 0.5%, supported by optimistic earnings from Nestle and Volvo.
“Markets are currently a story about three Vs – located at a crossroads in the evolution of the virus, vaccination rates and V-shaped recoveries,” wrote general company strategist Alain Bokobza in a note to customers.
“Our overall position is unchanged, meaning there is no exuberance yet. Credit risk remains under control, so risky assets should continue to rise high … Stay at risk for now.”
The sustained start of the European day followed overnight growth in Asia, where 225 rose 2.4%, and the broadest MSCI index of Asia-Pacific equities outside Japan rose 0.3%.
US futures showed a marginally lower opening on Wall Street, down 0.1%, albeit at a record high.
Despite generally optimistic stocks, oil – another growth-oriented asset – fell after a resurgence of COVID-19 cases in India and Japan, and a recent surprise rise in stocks in the United States influenced sentiment.
futures fell 0.5% to $ 61.04 a barrel, while the European benchmark fell 0.6% to $ 64.95.
“An unexpected and sharp rise in US stocks has fueled concerns about weak demand, which has met expectations for a strong recovery in demand,” said Satoru Yoshida, a commodity analyst at Rakuten Securities.
“What is affecting market sentiment is the fact that the COVID-19 pandemic is spreading rapidly again in India and Japan.”
US Treasury yields remained depressed, but moved away from intra-day lows, with yields on 10-year benchmark notes at 1.5644% on Thursday.
The German 10-year yield on government bonds, the euro area benchmark, also fell and was last traded at -0.26%.
In the foreign exchange markets, the dollar last traded with a basket of important partners.
The euro rose 0.1% to $ 1,205, not far from the strongest since March 3. Since the beginning of April, the common currency has gained up to 3% against the dollar.
Although the euro is expected to be slightly shaken by the ECB meeting, without expecting any change, traders will look for positive words about the state of the economy and any suggestion that its bond purchases could be reduced.
“The European Central Bank is not expected to develop down this Thursday, with analysts predicting that there will be another steady session from Christine Lagarde and Co.,” said Connor Campbell, a financial analyst at Spreadex.
“But until the next meeting – the central bank passes through May – the ECB could use this opportunity to sharpen its direction for the future. There are also falcons lurking among the pigeons, which means the meeting may not go to as well as forecast. “
The meetings of the US Federal Reserve and the Bank of Japan are coming up next week.
In this context, it withdrew from a two-month high to trade down 0.5% to $ 1,785.3 per ounce.