(Bloomberg) -- The upward march in global stock markets continued, with European equities climbing on strong economic data and U.S. futures pointing to a continuation of yesterday’s rally. The dollar advanced.
The Stoxx Europe 600 index rose for a fifth day as data showed joblessness in the euro area declined to the lowest level since early 2009 last month and German industrial production rebounded in November. Shares were helped by a weaker euro, while the pound fell as a reshuffle of senior U.K. government ministers descended into chaos, and China’s yuan dropped after the central bank was said to have effectively removed an adjustment mechanism used for its currency fixing. Oil traded near $62 a barrel.
Earnings reports due this week from banks including JPMorgan Chase & Co. and Wells Fargo & Co. will likely now dominate the market’s focus as traders look for more reasons to chase stocks trading at or near record highs. Analysts who raised profit estimates for companies around the world last week outnumbered those cutting them by the biggest margin since Citigroup Inc. began compiling the data 18 years ago.
Equity levels were tested in Asian trading hours when Samsung Electronics Co. missed profit forecasts and the BOJ announcement hit Japanese shares, underscoring how the rollback of central bank stimulus could affect markets. But most of the region’s major gauges still ended in the green.
Here are some of the main events to watch for this week:
- U.S. inflation data are forecast to show price pressures remain muted, giving hawks little reason to argue for faster tightening.
- St. Louis Fed bank President James Bullard and head of the New York Fed Bill Dudley are among central bankers scheduled to speak.
- China producer and consumer prices data come Wednesday, while a reading on the country’s money supply is expected in coming days.
- Talks between South Korea and North Korea are set to take place Tuesday.
Terminal users can read more in our markets blog.
These are the main moves in markets:
- The Stoxx Europe 600 Index increased 0.5 percent as of 9:02 a.m. New York time, hitting the highest in more than two years with its fifth consecutive advance.
- The MSCI All-Country World Index increased 0.1 percent, reaching the highest on record with its sixth consecutive advance.
- The U.K.’s FTSE 100 Index jumped 0.5 percent to the highest on record with the largest climb in more than a week.
- Germany’s DAX Index jumped 0.3 percent, reaching the highest in two months on its fifth consecutive advance.
- The MSCI Emerging Market Index sank 0.2 percent, the first retreat in more than a week and the largest decrease in two weeks.
- Futures on the S&P 500 Index gained 0.2 percent, reaching the highest on record with its sixth consecutive advance.
- The MSCI Asia Pacific Index climbed 0.2 percent, hitting the highest on record with its sixth straight advance.
- Japan’s Nikkei 225 Stock Average rose 0.6 percent to the highest in more than 26 years.
- The Bloomberg Dollar Spot Index increased 0.2 percent to the highest in more than a week.
- The euro fell 0.4 percent to $1.1924, the weakest in almost two weeks.
- The British pound declined 0.3 percent to $1.3521.
- The Japanese yen jumped 0.4 percent to 112.63 per dollar, the first advance in a week and the biggest increase in more than a week.
- The yield on 10-year Treasuries jumped two basis points to 2.50 percent, the highest in about 10 months.
- The yield on two-year Treasuries fell one basis point to 1.95 percent, the biggest fall on record.
- Germany’s 10-year yield fell one basis point to 0.42 percent, the lowest in almost two weeks on the largest fall on record.
- Britain’s 10-year yield increased one basis point to 1.242 percent.
- Gold sank 0.6 percent to $1,312.67 an ounce, the weakest in more than a week on the largest decrease in more than a month.
- West Texas Intermediate crude increased 0.6 percent to $62.07 a barrel, the highest in more than two years.
--With assistance from Cecile Vannucci Yvonne Man Sofia Horta e Costa and Adam Haigh
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