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Global Markets: Stocks hit two-week high, led by banks ahead of earnings

Reuters  |  NEW YORK 

By Hilary Russ

NEW YORK (Reuters) - Global stocks hit a two-week high on Monday, led by a rise in ahead of earnings reports from the biggest U.S. lenders later in the week, while sterling took a hit after another British cabinet resignation left Theresa May's plans in chaos.

The equity index, which tracks shares in 47 countries, rose 0.86 percent. Wall Street notched a third straight day of gains as the market looked past the tit-for-tat trade battle under way between and

The Index gained 0.88 percent, led by a nearly 3 percent surge in bank stocks, their biggest daily rise since March. JPMorgan, and are all due to report quarterly results on Friday.

The rose 320.11 points, or 1.31 percent, to 24,776.59, while the added 67.81 points, or 0.88 percent, to 7,756.20.

A pick-up in bond yields also boosted equities.

Overall, profits appear on track for another quarter of year-over-year growth greater than 20 percent, 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 also rose, with the pan-European index gaining 0.58 percent, led by a strong bounce across and

MSCI's broadest index of shares outside climbed 1.35 percent, following 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 Minister on Sunday, but Johnson's announcement pulled the rug out, calling into question May's ability to deliver the vision of continued close ties with the that she said they had agreed to last week.

The pound dove more than 1 percent at one point before partially recovering to stand 0.29 percent below Friday's close.

Britain's FTSE gained 0.92 percent, helped by the currency's weakness, although analysts said the political tensions were no positive for stocks in the longer term.

The drop in sterling helped cushion the dollar more broadly against a basket of currencies, with the dollar index firming fractionally to 94.086. The euro was near the unchanged mark at $1.1749.

In commodity markets, pushed higher as the dollar eased. U.S. crude rose 0.3 percent to $74.02 per barrel and Brent was last at $78.25, up 1.48 percent on the day.

Spot gold added 0.3 percent to $1,257.31 an ounce.

(Reporting by in New York; additional reporting by in London and Sruthi Agrawal in Bangalore; writing by Dan Burns; Editing by Leslie Adler; Editing by Nick Zieminski)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 17:16 IST