Stocks Extend Gains; Pound Advances on Brexit Hope: Markets Wrap

Stocks in Europe and Asia extended Monday’s gains and U.S. futures advanced as the broad risk-on mood across markets continued. Treasuries fell and the dollar edged lower, while the pound strengthened ahead of a crucial Brexit vote.



Real estate and financial-services shares spurred the Stoxx Europe 600, while Asian stocks headed for their biggest gain since January and emerging-market shares jumped. U.S. futures advanced after the S&P 500 and Nasdaq 100 indexes surged a day earlier, helped by news of a technology merger, an upgrade to Apple Inc. and signs of stabilization in American retail sales. Crude oil climbed after Saudi Arabia was said to extend deep supply cuts.

In the U.K., the pound headed for a second day of gains after Prime Minister Theresa May struck a deal to revise the terms of Britain’s divorce from the European Union. It’s unclear whether she’s done enough to win Parliament’s support in a crucial vote later on Tuesday.

Alongside Brexit developments, indicators on U.S. inflation and Chinese production and retail sales as well as a Bank of Japan policy decision will be closely watched in the coming days as investors seek to maintain their rediscovered appetite for risk. Global stocks have been mostly on the rebound after their worst week since December.

Meanwhile, airline shares remain in focus as regulators and carriers from Singapore to Australia move to ground or block Boeing’s 737 Max jet following two deadly crashes in five months. The company’s shares slipped 1.8 percent in premarket trading.

(Source : https://www.bloomberg.com/news/articles/2019-03-11/asian-stocks-set-for-gains-dollar-retreats-markets-wrap)