World stocks inched higher today, adding to a 42 per cent surge from their March lows, as a surprise jump in last week’s US employment data fuelled hopes of a quicker global economic recovery from the coronavirus pandemic. — Reuters pic
In Europe, a surge in travel and leisure stocks helped cap losses on the pan-regional index, which traded 0.2 per cent lower after poor German and Chinese economic data. “European stocks are probably under pressure following weak China data overnight. However, we do not think this marks the end of the rally,” said Marija Vertimane, senior strategist at State Street Global Markets.
Hopes of a quick recovery in the US could however be quashed by mounting wave of protests demanding police reform after the killing of a black man in Minneapolis.The US jobs data pushed the 10-year Treasury yield as high as 0.959 per cent on Friday, a level not seen since mid-March. It last stood at 0.929 per cent.
“The Fed at US$4-5 billion QE a day is not doing enough to offset supply. It would become more challenging for the Fed if the 10-year...yield approaches 1 per cent.”