Stocks Set to Extend Gains in Asia; Oil Rises: Markets Wrap

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(Bloomberg) — Stocks looked set to extend gains in Asia Tuesday as investors took comfort in progress on the Covid-19 vaccine rollout. Oil rallied as freezing temperatures in Texas roiled energy markets.

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Futures pointed higher in Tokyo where the Nikkei 225 Stock Average topped 30,000 yen on Monday for the first time since 1990 after data showed the economy is charging ahead. European stocks climbed led by a surge in the FTSE 100 Index after the U.K. hit a vaccination milestone. U.S. markets were closed for Presidents’ Day on Monday and Chinese markets remain shut for the Lunar New Year holiday. The dollar slipped and Treasury futures retreated. The pound strengthened.

An Arctic blast in the U.S. threatened to disrupt energy supplies, sending crude oil to a 13-month high. Texas began rolling power blackouts for millions of households for the first time in a decade and traders estimate a few hundred thousand barrels a day of output in the state may be impacted by well shutdowns, traffic jams and power outages.

© Bloomberg MSCI World Index’s price-to-earnings ratio is at the highest level since 2009

Global equities have risen for 11 straight sessions to all-time highs and the Treasury yield curve has tested the steepest levels in more than five years as traders bet on improving growth and benign inflation. Investors see a combination of government spending and vaccines driving the economy out of the pandemic.

“Yields are a long way off causing damage to growth or the equity market outlook,” Chris Iggo, chief investment officer of core investments at Axa Investment Managers, said in a note. “Earnings are growing and secular themes are driving returns. However, complacency is dangerous.”

Read: JPMorgan’s Barometer Says Markets Most Complacent in Two Decades

Elsewhere, Bitcoin traded around $48,000 after hitting an all-time high in weekend trading.

Here are some key events coming up:

Earnings roll on with companies including, BHP Group, Daimler, Credit Suisse, Deere, Danone and Nestle.Euro-area finance ministers will discuss the bloc’s current economic situation and outlook on Tuesday.Federal Open Market Committee minutes from the January meeting are due Wednesday.U.S. retail sales figures come on Wednesday.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index increased 0.5%.Nikkei 225 futures rose 0.4%.Australia’s S&P/ASX 200 Index futures gained 0.3%.

Currencies

The yen weakened 0.4% to 105.35 per dollar.The offshore yuan rose 0.3% to 6.4061 per dollar.The Bloomberg Dollar Spot Index fell 0.1%.The euro increased 0.1% to $1.2133.The British pound climbed 0.4% to $1.3906.

Bonds

The yield on 10-year Treasuries was unchanged at 1.21%.

Commodities

West Texas Intermediate crude gained 1.1% to $60.12.Gold weakened 0.3% to $1,818.86 an ounce.

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