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Global Markets: Stocks hit two-week high as banks lead ahead of earnings

Reuters  |  NEW YORK 

(Reuters) - Global stocks hit a two-week high on Monday with 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 equity <.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 and

The <.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 , and due to report on Friday were seen as the primary drivers to the upside.

Overall, profits appear on track for another quarter of greater than 20 percent year-over-year growth, according to estimates. That has helped blunt concerns about the deteriorating global trade scene after the and slapped tariffs on some $34 billion of each other's goods on Friday.

"The market is anticipating a very good earnings season and ignoring any trade issues," said Paul Nolte, at in

also found support from the first notable uptick in yields in two weeks. The yield on the 10-year note rose 3 basis points to nearly 2.86 percent.

European and Asian stocks ended in the black as well, with the pan-European 600 <.STOXX> was up 0.58 percent, led by a strong bounce across and MSCI's broadest index of shares outside <.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.

The pound lost ground after added his name to the clutch of British cabinet ministers to quit in protest over Theresa May's plan for leaving the

Sterling had been whipsawed a bit by the two other ministerial departures, including 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, pushed higher as the dollar eased. Brent rose $1.12 to $78.23 a barrel, and U.S. light sweet crude rose 21 cents to $74.

Gold was 0.4 percent firmer at $1,259.46 an ounce .

(Reporting by in London and Sruthi Agrawal in Bangalore; writing by Dan Burns; Editing by Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 01:14 IST