Bloomberg News - Stocks Extend Gains; Pound Advances on Brexit Hope: Markets Wrap

By Todd White
Stocks in Europe and Asia extended Monday’s gains and U.S. futures advanced as the broad risk-on mood across markets continued. Treasuries fell and the dollar edged lower, while the pound strengthened ahead of a crucial Brexit vote.
Real estate and financial-services shares spurred the Stoxx Europe 600, while Asian stocks headed for their biggest gain since January and emerging-market shares jumped. U.S. futures advanced after the S&P 500 and Nasdaq 100 indexes surged a day earlier, helped by news of a technology merger, an upgrade to Apple Inc. and signs of stabilization in American retail sales. Crude oil climbed after Saudi Arabia was said to extend deep supply cuts.

In the U.K., the pound headed for a second day of gains after Prime Minister Theresa May struck a deal to revise the terms of Britain’s divorce from the European Union. It’s unclear whether she’s done enough to win Parliament’s support in a crucial vote later on Tuesday.

Alongside Brexit developments, indicators on U.S. inflation and Chinese production and retail sales as well as a Bank of Japan policy decision will be closely watched in the coming days as investors seek to maintain their rediscovered appetite for risk. Global stocks have been mostly on the rebound after their worst week since December.

Meanwhile, airline shares remain in focus as regulators and carriers from Singapore to Australia move to ground or block Boeing’s 737 Max jet following two deadly crashes in five months. The company’s shares slipped 1.8 percent in premarket trading.

Here are some key events coming up:

• U.S. consumer-prices data for February are due Tuesday.
• The U.K. House of Commons votes Tuesday on May’s revised Brexit deal, just weeks before Britain is scheduled to leave the EU.
• Chinese retail sales and industrial production data are scheduled for release this week. The National People’s Congress is set to wrap up on Friday.
• Bank of Japan Governor Haruhiko Kuroda will speak on Friday, after he and his board meet to decide on monetary policy.

These are the latest moves in markets:

Stocks

• Futures on the S&P 500 Index gained 0.2 percent as of 9:31 a.m. London time to the highest in a week.
• The Stoxx Europe 600 Index increased 0.1 percent.
• The U.K.’s FTSE 100 Index fell 0.3 percent.
• The MSCI Asia Pacific Index jumped 1.1 percent, the biggest surge in almost six weeks.
• The MSCI Emerging Market Index climbed 1 percent.

Currencies

• The Bloomberg Dollar Spot Index dipped 0.1 percent to the lowest in a week.
• The euro advanced 0.3 percent to $1.1282.
• The British pound climbed 0.5 percent to $1.3212, the strongest in more than a week.
• The Japanese yen fell 0.2 percent to 111.43 per dollar, the largest fall in more than a week.

Bonds

• The yield on 10-year Treasuries advanced three basis points to 2.67 percent, the biggest gain in more than a week.
• Germany’s 10-year yield gained three basis points to 0.10 percent, the largest climb in more than a week.
• Britain’s 10-year yield climbed six basis points to 1.24 percent, the highest in a week on the biggest increase in almost two weeks.

Commodities

• Gold increased 0.3 percent to $1,297.09 an ounce.
• West Texas Intermediate crude gained 1.1 percent to $57.39 a barrel, the highest in 16 weeks.

— With assistance by Chikako Mogi, Katherine Greifeld, and Andreea Papuc