GLOBAL MARKETS-Stocks hit record highs ahead of Fed meeting

Published by: MRT

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GLOBAL MARKETS-Stocks hit record highs ahead of Fed meeting

For Thyagaraju Adinarayan and Hideyuki Sano

LONDON / TOKYO, June 14 (Reuters) – Stock markets hit highs on Monday and returns on U.S. government debt were trading near three-month lows, on the slightest concern over rising inflation and ahead of this week’s meeting. of the Federal Reserve.

* The MSCI World Stock Index and STOXX 600 rose 0.3% to record highs, driven by the outlook for an economic recovery from COVID-19 and anticipation of a dovish monetary policy by central banks.

* Recovery bets also pushed oil to highs since May 2019.

* S&P futures rose 0.1% after the market apparently deemed Thursday’s US inflation data and rising factory prices in China to be temporary or manageable.

* Goldman Sachs economists said concerns that rising inflation will derail the market recovery or lead to considerably higher bond yields were likely misplaced.

* The return on the 10-year US Treasury bond stood at 1.4619%, with investors apparently less concerned about inflation.

* Many participants expect the Fed to repeat its dovish view at the two-day meeting starting Tuesday.

* Asian markets were calmer with China, Hong Kong and Australia closed for holidays. The Nikkei gained 0.7%, while MSCI’s Asia Pacific Stock Index outside of Japan was down 0.2%.

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