In a surge of green across the board, the Stoxx Europe 600 index leaped by a noteworthy 1.6%, poised for its most triumphant day in the entire year. Every industry sector joined the party, with miners leading the charge. The catalyst? Reports from Bloomberg suggesting that China is gearing up to roll out fresh measures to bolster its economy. Anglo American Plc took the lead with a robust 5% gain, while Glencore Plc, Rio Tinto Plc, and ArcelorMittal weren’t far behind, each adding over 3%. Carmakers, seeing their most significant upswing in four months, were led by Volvo Car AB-B.
Across the pond, futures on the S&P 500 and Nasdaq 100 barely budged after Monday’s robust performance on Wall Street. Chinese stocks listed in the U.S., including Alibaba Group Holdings Ltd. and JD.com Inc., were among the early birds in the premarket winners’ circle. Meanwhile, PepsiCo Inc. climbed as much as 2.7% after revising its profit forecast. On the flip side, mobile-chip makers Skyworks Solutions Inc. and Qorvo Inc. faced a dip after Citigroup Inc. downgraded the stocks to sell.
Shifting to the bond scene, Treasuries joined the party with gains, playing catch-up with Monday’s global government bond rally, which coincided with the U.S. cash market closure. Yields, however, lifted from their session lows as demand for safe-havens dwindled. The 10-year, despite earlier marking its most substantial drop since March, was about 11 basis points lower on the day. The dollar, after four days of declines, found its footing and held steady.
Last week’s optimism about another Fed interest rate hike this year took a turn on Monday. Fed Vice Chair Philip Jefferson hinted at a cautious approach in light of the recent uptick in Treasury yields. Adding to the narrative, Fed Bank of Dallas President Lorie Logan suggested that the surge in long-term rates might lessen the need for further tightening. With a lineup of more Fed speakers today, the unfolding picture of the monetary landscape is sure to keep investors on the edge of their seats.
