Recovery for US stocks expected amid global rally
investmentnews.comEuropean stocks rallied as investors took some comfort from assurances by the Italian government that a new windfall tax on banks will be capped.
Italy’s benchmark FTSE MIB Index jumped more than 2%, snapping a six-day streak of losses. UniCredit SpA and Intesa Sanpaolo SpA, at the center of Tuesday’s declines when the new tax was unveiled, became Wednesday’s biggest gainers, pushing the Stoxx 600 up 1%.
Other markets tilted risk-on, with the euro strengthening, copper rebounding and US futures pointing to a recovery on Wall Street.
Meanwhile, Treasuries steadied ahead of another closely watched bond auction later today. The US government is expected to sell $38 billion of new 10-year notes, $3 billion larger than the last 10-year note debut in May.
The debt auctions will gauge how concerned investors are about a rising US budget deficit, a week after Fitch Ratings decided to strip the US of its top credit rating. Tuesday’s $42 billion sale of three-year notes had a lower-than-expected yield, a sign that demand was stronger than anticipated.
Key events this week:
Some of the main moves in markets:
This story was produced with the assistance of Bloomberg Automation.
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