European and Asian shares advanced while U.S. equity futures climbed as benchmark Treasury yields held steady below 2.9 percent and the dollar weakened. Investor focus is shifting back to U.S. monetary policy, with two appearances set for this week from new Federal Reserve Chairman Jerome Powell.
Powell may help set a new direction for investors at a time when some of the biggest names in markets are at odds over the implications of this month’s surge in U.S. bond yields. Morgan Stanley put out a bullish call on Treasuries Monday, countering warnings on the securities from Goldman Sachs Group Inc. and Warren Buffett. Bond traders are still pricing less than the three quarter-point interest-rate hikes that Fed officials have signaled as likely this year.
Here are some key events scheduled for this week:
- ECB President Mario Draghi speaks in Brussels on Monday.
- Bank of Korea has policy decision and briefing on Tuesday.
- Powell testifies before a House panel on Tuesday. He’ll discuss the Fed’s Semi-Annual Monetary Policy Report and the state of the economy. Powell returns on March 1 before a Senate committee.
- Companies announcing earnings this week include: Vale, BASF, Standard Chartered, Bayer, Lowe’s, Galaxy Entertainment Group, Anheuser-Busch InBev, Peugeot, WPP, and London Stock Exchange Group.
- U.K. Prime Minister Theresa May delivers a speech on Britain’s relationship with the European Union after Brexit.
- A barrage of data is expected out of Japan including retail sales and industrial production Wednesday, and capital spending Thursday.
- In China, the official and Caixin purchasing managers’ indexes on Wednesday and Thursday respectively may show growth momentum slowed slightly in February, though the signal may be clouded by the holidays.
These are the main moves in markets:
Stocks
- The Stoxx Europe 600 Index gained 0.5 percent as of 6:38 a.m. New York time, the highest in more than three weeks.
- Futures on the S&P 500 Index increased 0.3 percent to the highest in more than three weeks.
- The MSCI Asia Pacific Index climbed 0.8 percent to the highest in more than three weeks.
Currencies
- The euro rose 0.4 percent to $1.2339.
- The British pound gained 0.6 percent to $1.405 on the largest climb in more than a week.
- The Japanese yen appreciated 0.2 percent to the strongest in a week.
- The Russian ruble increased 1 percent to the strongest in more than three weeks on the largest increase in more than a week.
Bonds
- The yield on 10-year Treasuries fell one basis point to 2.86 percent, the lowest in almost two weeks.
- Germany’s 10-year yield rose less than one basis point to 0.65 percent, the biggest advance in a week.
Commodities
- West Texas Intermediate crude dipped 0.1 percent to $63.46 a barrel.
- Gold climbed 0.8 percent to $1,338.80 an ounce, the highest in a week on the biggest increase in more than a week.
