Global stocks peak, oil rises on Middle East tensions By Reuters

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2/2 © Reuters. FILE PHOTO: Screen shows recent Nikkei stock average movements outside a brokerage in Tokyo 2/2

By Simon Jessop LONDON (Reuters) – Global stocks rose for the eleventh day in a row to reach a peak of optimism over the launch of COVID-19 vaccines and new fiscal aid from Washington, as tensions in the Middle East drove oil. at a 13-month tall. As more people get vaccinated in key markets like the United States, and with US President Joe Biden looking to inject an additional $ 1.9 trillion stimulus into the economy, the so-called reflation trade has gained steam in recent days. On Friday, the Cboe volatility index, known as Wall Street‘s “scare gauge,” finished at its lowest in nearly a year, helping drive a 0.3% gain for the broader measure of MSCI World Stocks on Monday. Following the example of a stronger Asian session, albeit reduced by the holidays, Europe’s main indices were a sea of ​​green in early deals, with 100 up 1.3%. With the markets of China and Hong Kong closed for the Lunar New Year holiday, it led the way, rising 1.9% to regain the 30,000 point level for the first time in more than three decades. E-mini futures were also up 0.4%, although the US equity markets will be closed on Monday for the Presidents’ Day holiday. Later in the week, all eyes will be on the release of the minutes of the January meeting of the US Federal Reserve, where the authorities decided to leave rates unchanged, to give clues about the likely direction of monetary policy. Those concerned about the impact of market exuberance on the inflation outlook will also have new data to analyze, with Britain, Canada and Japan to report. Friday will also see major economies, including the United States, release preliminary Purchasing Managers Indices (PMIs) for February. “We believe investors should prepare for the volatility episodes ahead, but view them as opportunities rather than threats,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “We encourage investors to stick with their long-term financial plans and keep putting excess cash to work.” Oil joined equity markets to push higher, reaching its highest level since January 2020 in hopes that US stimulus will boost the economy and fuel demand and after a Saudi-led coalition A Saudi fighting in Yemen said it intercepted an explosives-laden drone fired by Iran’s Houthi Group. [O/R] it was up 1.3% to $ 63.24 a barrel. Oil gained 1.9% to $ 60.58, just below previous highs. With risk assets in favor, safe havens fell, and gold was down 0.3% to $ 1,817 an ounce. German 10-year bond yields also rose to their highest level since September, rising 4 basis points to -0.387%. The dollar remained near two-week lows as traders took a more cautious view of the pace of recovery in the US economy. Against a basket of currencies, it was down about 0.1%. Meanwhile, it recovered some of its overnight weakness to trade down 2.3% to $ 47,550.76, down from an all-time high of $ 49,714.66.