European stocks look set to open on a cautious note Tuesday as investors remain apprehensive over whether the $1.9 trillion U.S. stimulus package will help spur quicker global economic recovery.
Asian markets are trading mixed and the dollar climbed to a three-month peak as rising bond yields prompted investors to price in higher inflation and a resulting increase in interest rates.
Gold held near nine-month lows while oil prices rose on expectations of recovery in the global economy.
U.S. Treasury Secretary Janet Yellen said on Monday that President Biden’s coronavirus aid package would provide enough resources to fuel a “very strong” U.S. economic recovery, and that “there are tools” to address inflation if it becomes a problem.
U.S. stocks ended mixed overnight as passage of the stimulus bill contributed to an increase in treasury yields for the fourth consecutive session, prompting traders to rotate out of high-flying tech stocks into cyclicals.
The Dow Jones Industrial Average hit a fresh record intraday high before ending 1 percent higher while the S&P 500 shed half a percent and the tech-heavy Nasdaq Composite tumbled as much as 2.4 percent to reach its lowest closing level in almost three months.
European stocks rallied on Monday as banks and automakers surged on hopes of a solid economic rebound from the coronavirus downturn.
The pan European Stoxx 600 climbed 2.1 percent. The German DAX jumped 3.3 percent, France’s CAC 40 index surged 2.1 percent and the U.K.’s FTSE 100 rose 1.3 percent.
European Shares Head For Cautious Start After Strong Rally
2021-03-09 05:35:15
