European Stocks Add To Recent Advance, Wall St Opened Higher
* Markets in the UK, China and Japan are closed for public holidays.
* Busy week for economic data with US employment data on Friday
* Yields in Germany reached their highest level since March 2020.
European equities were higher on Monday as investors were optimistic about the global recovery, awaiting a busy week for the release of US economic data, which is expected to underline the strength of the recovery.
With China, Japan and the UK closed for public holidays, trading volumes were low.
The Euro STOXX index rose 0.71%, while the German DAX added 0.61% and the French CAC 40 added 0.5%.
Wall Street futures rallied, indicating even greater gains after equity markets hit another round of record highs last week.
The MSCI global stock index, which tracks stocks in 49 countries, remains unchanged as losses in Asia offset gains in Europe.
At the heart of investor enthusiasm for riskier assets is a sense that the global economy is about to boom as countries break free of constraints and consumers and businesses release some of their excess savings over the past year.
Investor optimism has been boosted by better-than-expected growth in corporate earnings over the past few weeks.
German retail sales data for March came out well above expectations, highlighting that the US-led economic recovery is now picking up steam elsewhere.
Recent business surveys also pointed to growing confidence in the recovery, although some economists believe businesses can get ahead of themselves and are more dependent on the success and speed of COVID-19 vaccination adoption.
While the data has been unrealistically strong in recent months – while the underlying economy is doing very well, production growth is not quite at the cosmic level that the polls suggest.