(Bloomberg) — Global stocks are in the midst of the longest run of gains since 2003 as optimism over the economic recovery sweeps across markets.
The MSCI World Index has risen for 12 straight sessions and U.S. equities were poised to open higher after the Presidents Day holiday. In Japan, the Nikkei 225 Stock Average extended its advance past the 30,000 level. European markets steadied after a rally on Monday.
The reflation trade is powering assets tied to economic growth and price pressure, including commodities and cyclical stocks. At the same time, investors are riding a wave of speculative euphoria from penny stocks to Bitcoin amid abundant policy support.
“Continued monetary stimulus and bursts of fiscal support maintain a strong foundation for risk assets,” said Seema Shah, chief strategist at Principal Global Investors.
Here’s a look at how it’s playing out in global markets:
Brent oil is holding near a 13-month high after freezing temperatures crippled the Texas power system and disrupted crude production. Nearly 5 million people across the U.S were plunged into darkness as homes and businesses lost power. Natural gas futures for March delivery surged as much as 6.3%.
In metals, copper climbed to the highest since 2012 and tin extended a dramatic surge. Citigroup Inc. forecasts copper prices will rally to $10,000 a ton in six to 12 months on a better-than-expected recovery in demand, most notably outside China.
Global debt markets are extending a selloff as investors shift money to riskier assets. German bunds and U.K. gilts both saw benchmark yields gain five basis points. Treasury 10-year yields rose four basis points to touch 1.25% — the highest since last March — while the 30-year equivalent pushed above 2%.
The dollar slipped against most of its major peers as haven bids waned. The pound gained for a third day, closing in on $1.40, amid signs that trade between the U.K. and European Union is normalizing.
Bitcoin reached another record, coming ever closer to $50,000. A flurry of recent announcements indicates the cryptocurrency is winning more mainstream attention, after Tesla Inc.’s purchase catapulted it onto the agenda of corporate treasurers.
Here are some key events coming up:
Earnings roll on with companies including, 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.
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