{"id":112852,"date":"2021-04-26T10:15:00","date_gmt":"2021-04-26T10:15:00","guid":{"rendered":"https:\/\/fin2me.com\/?p=112852"},"modified":"2021-04-26T10:15:00","modified_gmt":"2021-04-26T10:15:00","slug":"stocks-start-week-in-upbeat-mood-as-recovery-bets-dominate","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/stocks-start-week-in-upbeat-mood-as-recovery-bets-dominate\/","title":{"rendered":"Stocks start week in upbeat mood as recovery bets dominate"},"content":{"rendered":"
LONDON (Reuters) – European stocks clawed their way higher on Monday as world markets began the week in a relatively upbeat mood following further signs last week that economies are recovering rapidly.<\/p> The start to the week was relatively quiet, however, as investors refrain from taking on large positions ahead of a two-day Federal Reserve meeting beginning on Tuesday and quarterly gross domestic product numbers for the United States.<\/p>\n But the general sentiment remained bullish with Wall Street hitting another intraday record-high on Friday and European shares not far off record highs in early Monday trading.<\/p>\n The broader Euro STOXX 600 gained 0.23% while Germany\u2019s DAX rose 0.22%. Britain\u2019s FTSE 100 climbed 0.21%.<\/p>\n Asian shares also rallied where MSCI\u2019s broadest index of Asia-Pacific shares outside Japan reached its highest since March 18, despite a late sell-off in Chinese shares.<\/p>\n Wall Street futures pointed to a slightly weaker open.<\/p>\n The MSCI world equity index, which tracks shares in 49 countries, rose 0.2%.<\/p>\n Stocks are basking in a massive rally – the MSCI world index has suffered only three down months in the past 12 and is up nearly 5% this month and 9% for the year as investors bet on a rapid post-pandemic economic rebound turbocharged by vast government and central bank stimulus.<\/p>\n Analysts, however, say stocks look a little too confident and that the rally will run into hurdles after setting such a lightning pace and with so much of the recovery and fiscal stimulus splurge already priced in.<\/p>\n \u201cThe real crux of the issue, however, is what\u2019s in the price. The year-to-date rally has increasingly eliminated upside to our targets,\u201d noted Andrew Sheets, a strategist at Morgan Stanley.<\/p>\n \u201cAcross four major global equity markets (the U.S., Europe, Japan and emerging markets), only Japan is currently below our end-2021 strategy forecast.\u201d<\/p>\n Still, recent data pointing to a solid global economic recovery has only served to bolster confidence. Strong corporate earnings and the continued rollout of COVID-19 vaccinations in developed economies have also supported sentiment.<\/p>\n Early April manufacturing activity indicators out last week pointed to a robust start to the second quarter with data hitting record highs in the United States and signalling an end to Europe\u2019s double-dip recession.<\/p>\n First-quarter U.S. gross domestic product data due later in the week is likely to show activity probably returned to pre-pandemic levels, analysts said.<\/p>\n \u201cWe estimate that the economy will close the output gap and rise above potential in the second half of this year,\u201d ANZ economists wrote in a morning note, suggesting more upside for shares.<\/p>\n \u201c(Europe) cannot match this, but as 2021 progresses into 2022, the growth differential to the U.S. will narrow,\u201d they added.<\/p>\n In bond markets, government debt yields rose as investors dumped safer assets.<\/p>\n The U.S. 10-year Treasury yield rose 1 basis point to 1.5773% but that is some way off the plus 1.7% levels hit earlier this month when fears about a spike in inflation rattled markets.<\/p>\n In currencies, the dollar — which had benefited from rising Treasury yields – fell against a basket of currencies to its weakest since early March — another sign of the bullish mood of global investors this month.<\/p>\n Turkey\u2019s lira edged lower, adding to a recent slide and nearing an all-time low as a chill settled on relations with the United States and after the new central bank chief signalled that rate hikes would harm the economy.<\/p>\n In commodities, U.S. crude fell 57 cents to $61.57 per barrel and Brent eased 57 cents to $65.64.<\/p>\n Gold climbed 0.1% to $1,779 an ounce.<\/p>\nBOLSTER CONFIDENCE<\/h2>\n