Global stocks rose on Tuesday as investors turned their attention to the upcoming third-quarter earnings season, while easing bond yields provided some relief after recent market volatility.
The pan-European STOXX 600 gained about 1%, extending its advance to a third consecutive session. US stock futures also moved higher, while Japan’s Nikkei climbed as investors took confidence from the recent strength of technology shares.
Bond markets also showed signs of stabilising. French government bond yields fell after a sharp increase last week, while the premium investors demand to hold French debt over German bonds narrowed. Concerns about high government borrowing and political uncertainty had recently pushed European borrowing costs higher.
The euro recovered slightly after falling to a 17-month low, but remained under pressure from concerns over France’s fiscal position and political uncertainty in Spain. The US dollar remained relatively strong, supported by elevated Treasury yields.
Oil prices eased, with Brent crude trading around $100 a barrel after a decline in the previous session. Increased Middle East exports and plans by G7 countries to boost supplies helped reduce some concerns about tight global oil availability.
Investors are now watching corporate earnings and central-bank signals for clues about the direction of markets as concerns over inflation, government debt and borrowing costs remain.
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