U.S. stock futures traded in the green on Monday after hitting record highs on Friday. On the other hand, Treasuries plummeted down along with European government bonds.
Futures on the S&P 500 Index surged forward by 0.2%, while the Stoxx Europe 600 Index increased by 0.3%. Germany’s DAX Index also soared by 0.5%. However, the MSCI Asia Pacific Index tumbled down by 0.7%.
In Europe, mining shares gained the most along with utilities, including Suez SA, which rallied after an approach by rival Veolia Environnement SA. Britain’s stock and bond markets are closed for a public holiday, though. According to reports, U.K. Treasury officials are pushing for tax increases.
In Asia, Japanese equities outperformed peers, boosted by Berkshire Hathaway Inc.’s purchase of stakes in five major trading companies. Investors are taking comfort as the global economy is reemerging from coronavirus shutdowns. They are preparing to scour more data this week for further clues on the scale of the upswing.
Thus far, inflation readings from Italy, Spain, and several German states are below where the region’s central bank wants them to be. On Tuesday, the eurozone will publish manufacturing and inflation data.
U.S. jobs numbers will also be released on Thursday and Friday. Coronavirus infections are rising in the U.S. again, while India is becoming the world’s epicenter for new cases. The pandemic is far from beaten, with the worldwide total surpassing 25 million.
What does the expert think?
Esty Dwek, the head of global market strategy at Natixis Investment Managers Solutions, stated that while momentum has slowed in light of surging cases, in the U.S. in July and in Europe in August, the economic rebound continues. Central banks have already declared they would remain accommodative for a long time.
On Friday, the Nasdaq Composite skyrocketed while the S&P 500 closed at an all-time high for a sixth consecutive trading session. Meanwhile, West Texas crude oil rose above $43 a barrel.