On Wall Street, each of the major averages closed higher, led by a gain of nearly 4 per cent in the Nasdaq, giving the tech-heavy index its best day since November 4. — Reuters picNEW YORK, March 10 ― A gauge of global stocks headed for its biggest one-day percentage climb in a week yesterday as a fall in US Treasury yields eased concerns the economic recovery could overheat and lead to stronger-than-expected inflation.
“It is important to put it into context ― the 10-year has gone from 1 per cent to 1.60 per cent,” said Andrew Mies, chief investment officer at 6 Meridien in Wichita, Kansas. “If it goes to 2 per cent nobody will be particularly surprised. I don't think many people would expect it to go to 2.5 per cent.”
The index has been highly susceptible to climbing rates, and Monday's retreat left it down more than 10 per cent from its February 12 close, confirming what is widely considered to be a correction. In Europe, stocks closed higher after extending gains from their best session in four months a day earlier as a rise in shares of oil and utility companies helped counter losses in miners.Investors will closely watch a European Central Bank meeting later this week for whether policymakers have decided to step up the pace of emergency bond purchases to appease skittish markets.