© Reuters. FILE PHOTO: A man with an umbrella walks in front of an electrical board showing the Nikkei index on a Tokyo estate agent’s premises
By Herbert Lash and Tommy Wilkes
NEW YORK / LONDON (Reuters) – Gold prices rose and a measure for global equity markets closed not far from a record high on Monday, as investors looked to corporate results and US data underscored the strength of the economic recovery from pandemic closings.
The dollar was down against a basket of currencies as government bond yields fell on data showing US manufacturing activity grew more slowly in April.
The 10-year Treasury note yield traded 2.8 basis points lower at 1.6029% after a lack of inputs likely curtailed factory production as massive fiscal stimulus and rising COVID-19 vaccinations sparked pent-up demand.
The 0.3% decline made gold more affordable to foreign currency holders, while falling government bond yields reduced the opportunity cost of holding non-interest-bearing gold.
In Europe, inventories closed higher after the European Commission outlined plans to ease COVID-19 restrictions on tourism. Strong factory and retail sales data and a robust earnings season contributed to investor optimism.
The pan-European index closed 0.6% and the MSCI benchmark for global equity markets rose 0.2% to 703.31, about 0.7% below last week’s record high.
On Wall Street, the value was up 0.7% and the value was up 0.27%. That fell by 0.48%.
A decline in high-flying tech and related stocks – including Amazon.com Inc (NASDAQ 🙂
The markets in China, Japan and the UK were closed on public holidays, which kept trading volumes low.
Earnings for S&P 500 companies are expected to grow 46.3% year over year in the first quarter, almost double the rate forecast in early April, data from Refinitiv IBES shows.
Of the 303 companies that have reported so far, 87.1% have exceeded analyst estimates or more than 20 percentage points above the long-term average, Refinitiv said.
German retail data for March came in far better than expected, underscoring that a US-led economic recovery is now gaining momentum elsewhere.
However, some economists believe that businesses may stand before themselves and be more influenced by the success and speed of COVID-19 vaccination adoption.
“The data has been unrealistically strong over the past few months – while the underlying economy is doing very well, manufacturing growth is not quite at the stratospheric levels the polls imply,” said UBS economist Paul Donovan.
A busy week is expected to show significant strength for US economic data, particularly for the ISM manufacturing survey and April payroll.
Eurozone government bond yields reversed previous gains to track US Treasuries that were lower than US manufacturing activity.
The 10-year yields on the German benchmark fell 0.3 basis points to -207%, previously hitting their highest level since March 2020 at -0.162%.
The rise in German yields accelerated last week as German inflation further exceeded the European Central Bank’s target and US data showed economic growth accelerated in the first quarter.
The euro was up 0.35% to $ 1.206 and the Japanese yen was up 0.14% against the greenback at $ 109.10 per dollar.
Cryptocurrency Ether hit a new record high of $ 3,342.81 as investors bet on increased adoption. The 356% gain in 2021 dwarfed that of bigger rival Bitcoin.
Oil rose more than 1% as Chinese economic data and US vaccination rates pointed to strong recovery in demand in the world’s two largest economies.
Futures rose 80 cents to $ 67.56 a barrel. Futures rose 91 cents to $ 64.49 a barrel.
The US gained 1.4% to $ 1,791.80 an ounce.