NEW YORK (Reuters) - Global stocks hit a two-week high on Monday with bank shares leading the drive higher ahead of earnings reports from the biggest U.S. lenders later in the week, while sterling took at hit after another British cabinet resignation.
The MSCI world equity index <.MIWD00000PUS>, which tracks shares in 47 countries, rose 0.80 percent. Wall Street notched a third straight day of gains as investors continued to take solace from Friday's balanced U.S. payrolls report, which overshadowed the tit-for-tat trade battle underway between Washington and Beijing.
The S&P 500 Index <.SPX> gained 0.80 percent, led by a nearly 3 percent surge in bank stocks <.SPXBK>, their biggest daily rise since March. A pickup in bond yields and optimism about the coming earnings-reporting season with JPMorgan
Overall, S&P 500 profits appear on track for another quarter of greater than 20 percent year-over-year growth, according to Thomson Reuters estimates. That has helped blunt concerns about the deteriorating global trade scene after the United States and China slapped tariffs on some $34 billion of each other's goods on Friday.
European and Asian stocks ended in the black as well, with the pan-European STOXX 600 <.STOXX> index was up 0.58 percent, led by a strong bounce across mining and energy stocks. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> climbed 1.3 percent, on top of a 0.7 percent rally on Friday when the launch of U.S. tariffs on Chinese imports came and went without too many fireworks.
Sterling had been whipsawed a bit by the two other ministerial departures, including Brexit Minister David Davis, but it was the Johnson's announcement that pulled the rug out. The pound dove more than 1 percent at one point and was still about 0.67 percent below where it had been beforehand. It was 0.25 percent below Friday's close.
Britain's FTSE <.FTSE> gained 0.92 percent, helped by the currency's weakness.
The drop in sterling helped cushion the dollar more broadly against a basket of currencies, with the dollar index firming fractionally to 94.079 <.DXY>. The euro was near the unchanged mark at $1.1747
In commodity markets, oil prices pushed higher as the dollar eased. Brent
Gold was 0.4 percent firmer at $1,259.46 an ounce
(Reporting by Kit Rees in London and Sruthi Agrawal in Bangalore; writing by Dan Burns; Editing by Nick Zieminski)
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