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Sydney - Global stocks headed for a fresh high as many markets reopened with investors focusing on stronger corporate earnings. The yen extended losses while Treasuries maintained declines.
The MSCI All-Country World Index was poised for a record close. South Korea paced gains in Asia, with the Kospi briefly topping its 2011 peak.
The Nasdaq Composite Index ended at a high in the US The yield on 10-year Treasuries held gains that came after Steven Mnuchin said it “could absolutely make sense” for the US to sell ultra-long bonds. Gains in the Aussie dollar after the Reserve Bank of Australia left its benchmark interest rate unchanged faded away.
Investors are focusing on earnings that have helped power global stocks to a record, with tech shares outperforming. Equities have also rallied since Emmanuel Macron emerged as the front-runner over Marine Le Pen in the French presidential race.
A tentative deal by the US Congress to avert a government shutdown eliminated another concern this week, while worries about North Korea have lessened. US President Donald Trump said that if the circumstances were right, he would meet with leader Kim Jong Un.
Markets are still subject to jolts. Stocks were whipsawed during the US session after Trump suggested reintroducing rules that keep commercial and investment banking operations separate, triggering a brief slide in bank shares.
China data continue to add to concerns about the strength of the global economy, with a gauge of April manufacturing falling below estimates. That comes after a weaker-than-expected GDP report from the US, and ahead of Friday’s monthly American jobs report.
Here are the key events and data releases due this week:
Investors will be watching comments from a policy meeting of the Federal Open Market Committee Wednesday. Voters in France go to the polls on Sunday for the second round of presidential elections. Apple is among the companies due to report earnings on Tuesday. Coming up this week are results from BNP Paribas, Facebook, HSBC, Time Warner, Pfizer, Merck & Co, BMW, Royal Dutch Shell and Volkswagen.
Here are the main moves in markets:
Stocks
The MSCI All-Country World Index rose less than 0.1% as of 08:31, while the MSCI Asia Pacific Index added 0.4% to the highest level since June 2015. The Topix index rose 0.7% to the highest since March 21. Japanese markets will be closed for holidays over the next three days. South Korea’s Kospi index advanced 0.7%, at one point climbing above its all-time closing high reached on May 2, 2011.
The Hang Seng was flat and Singapore’s Straits Times Index added 0.8%. The Shanghai Composite Index declined 0.4%, following four straight days of gains. Australia’s S&P/ASX 200 Index slipped 0.1%, breaking a seven-day rally, as banks declined. Australia & New Zealand Banking lost 2.1% after missing first-half profit estimates.
Currencies
The yen slid 0.2% to 112.08 per dollar, the lowest since March 31, following a 0.3% slide on Monday. The Australian dollar was little changed. The currency rose as much as 0.4% after Australia kept interest rates unchanged. The Bloomberg Dollar Spot Index was flat.
Bonds
The yield on 10-year Treasuries was little changed after jumping four basis points to 2.32% on Monday, its first advance after three straight declines. Issuing longer-dated bonds “is something we’re considering,” Treasury Secretary Mnuchin said in an interview on Bloomberg Television on Monday.
“We have a working group looking at it.” The yield on Australian government debt with a similar maturity rose three basis points to 2.60%.
Commodities
West Texas Intermediate crude fell 0.3% to $48.68, after dropping 1% on Monday as Libyan output surged, more rigs were added in the US and Saudi Arabia cut prices to Asian customers. Copper on the London Metals Exchange rose 0.5%. Gold was steady at $1 256.43 an ounce, after dropping 0.9% on Monday.
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