Global Stocks Rally on Economic Secovery Hopes

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Global stocks gained on Tuesday as hopes of a robust economic recovery bolstered confidence in riskier assets.

A pullback in U.S. and European bond yields also buoyed equity markets.

In Europe, the Euro STOXX 600 shrugged off data showing a bigger than expected fall in fourth quarter euro zone economic output to rally 0.5.

Germanys DAX leapt to its third record high in a week after a surprise rise in January exports.

The speedier rollout of COVID19 vaccines in some countries and the United States planned 1.9 trillion stimulus package helped underpin a brighter global economic outlook, the Organisation for Economic Cooperation and Development said, as it raised its 2021 growth forecast to 5.6.

Conviction of a strong economic recovery is boosting risk sentiment and driving demand for riskier assets such as equities, said Sophie Griffiths, an OANDA market analyst.

Yesterdays troubles of rising bond yields have been quashed, for now, and the U.S. dollar is slipping lower.

Earlier, in volatile trading in Asia, Chinas benchmark Shanghai Composite index fell 1.8 to the brink of correction territory amid fears of policy tightening. Japans Nikkei finished 1 higher as consumer goods companies and property developers gained on expectations they would benefit from an economic recovery.

NASDAQ futures rose 2.1 and SP 500 futures 0.9.

MSCIs allcountry index was 0.3 higher.

U.S. Treasury Secretary Janet Yellen said on Monday that President Joe Bidens coronavirus aid package…

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