In European Equity Markets the pan-European Stoxx 600 closed 0.97% higher, with trade-sensitive Autos jumping 2.8% on average and the Basic Resources basket up more than 3%. Earnings continue to serve as the focal point for individual stock performance. Siemens Healthineers stock climbed 9.2% to hit an all-time high after the German medical technology group reported strong fourth-quarter earnings. At the other end of the European blue-chip index, GVC Holdings slumped over 11% as shares in British gambling companies were hit by calls from a cross-party coalition of lawmakers to tighten rules on online casinos.
In Currency Markets the U.S. dollar on Monday was broadly higher against safe-haven currencies such as the yen and Swiss franc, bolstered by higher risk appetite due to U.S.-China trade hopes and Friday’s generally upbeat U.S. non-farm payrolls report for October. The Chinese yuan rose to a 12-week high of 7.0225 against the greenback in the offshore market as risk sentiment continued to improve. Sterling was flat to slightly down at $1.2925, after last month’s rally from $1.2200, as investors wagered there was less risk of a hard Brexit now that an election campaign was underway.
In Commodities Markets oil prices rose $1 a barrel on Monday, buoyed by an improved outlook for crude demand as better-than-expected U.S. jobs growth added to market hopes a preliminary U.S.-China trade deal would be reached this month. Brent crude futures for January rose $1.03, or 1.7% to $62.72 a barrel. December U.S. crude futures was up $1.10 cents, or almost 2%, at $57.30 a barrel. Brent traded near its highest in more than a month as market optimism about progress in U.S.-China trade negotiations propelled U.S. stock indexes to record highs, helping to elevate oil.
In US Equity Markets gains in technology and energy shares pushed Wall Street’s three main indexes to record highs on Monday, as hopes of a U.S.-China trade deal and an improving domestic economy boosted risk appetite. The S&P 500 was up 0.46%, at 3,081.13 and the Nasdaq Composite rose 0.50%, at 8,428.74. Eight of the 11 major S&P 500 sectors were higher, with the energy shares gaining the most Under Armour Inc fell 15.4% as it lowered its full-year revenue forecast for a second straight time, a day after it confirmed a federal probe related to its accounting practices.
In Bond Markets Euro zone bond yields rose on Monday following upbeat noises from U.S.-China trade talks and a slightly stronger tone to U.S. economic data. Most 10-year bond yields were around 3 basis points higher in late trade as a selloff in bond markets gathered pace as the U.S. trading session got underway. Germany’s benchmark 10-year Bund yield was at -0.35% , above two-week lows hit last week at around -0.42%. Italy’s 10-year bond yield briefly touched 1.13% , its highest level since late August. U.S. 10-year Treasury yields were almost 6 bps higher on the day at 1.78% as investors braced for new supply this week.