European stocks are seen opening higher on Monday amid growth optimism, thanks to progress on a huge U.S. stimulus bill and the accelerating vaccine rollout.
Gold prices rose about 1 percent while the dollar slipped from a one-week high hit in the previous session after the U.S. House of Representatives approved Biden’s $1.9 trillion pandemic relief bill early Saturday.
The stimulus bill, which includes yet another round of one-time payments to most Americans, now moves to Senate floor for debate, where a vote could happen as early as next week.
Meanwhile, the U.S. FDA on Saturday authorized Johnson & Johnson’s single-shot Covid-19 vaccine for emergency use, beginning the rollout of millions of doses of a third effective vaccine that could reach Americans by early next week.
Asian markets rallied as global bonds stabilized after last week’s sharp losses.
Regional economic data proved to be a mixed bag, with China’s manufacturing recovery weakening for a third month in February, while Japan’s factory activity grew at its fastest pace in two years, separate reports showed.
South Korean exports grew for a fourth consecutive month in February, in a sign the economy is picking up momentum. The Indian economy returned to growth in Q3 after two quarters of contraction.
U.S. stocks ended mixed on Friday as yields fluctuated after the release of another batch of largely upbeat U.S. economic data.
The Dow Jones Industrial Average tumbled 1.5 percent and the S&P 500 dropped half a percent, while the tech-heavy Nasdaq Composite rose 0.6 percent after ending Thursday’s session at its lowest closing level in a nearly a month.
European stocks fell sharply on Friday amid lingering concerns over inflation and rising U.S. Treasury yields, with Bank of England Chief Economist Andy Haldane warning that it will be tough to rein in inflation.
The pan European Stoxx 600 shed 1.6 percent. The German DAX fell 0.7 percent, France’s CAC 40 index lost 1.4 percent and the U.K.’s FTSE 100 plunged 2.5 percent.
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