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LIVE MARKETS-Fresh record highs

05/10/2021 03:49
LIVE MARKETS-Fresh record highs

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FRESH RECORD HIGHS (0743 GMT)

Europe's pan-European index has just hit fresh highs supported by miners as expectations for easy monetary policy and optimism about the reopening of economies boosted cyclical sectors.

The STOXX 600 .STOXX rose just a tad in early trade but it was enough to hit fresh record highs. It was last up 0.1%.

Europe's basic resources index .SXPP jumped to a fresh 10-year high, last up 2.4%, with shares in BHP BHPB.L and Rio Tinto RIO.L up more than 3%.

London blue chips .FTSE also rose despite a surge in the pound as PM Johnson is expected to announce additional easing from lockdowns.

In terms of single stocks, British bakery and fast-food chain Greggs GRG.L shares jumped more than 8% after the company raised its outlook. nL8N2MX14L


(Joice Alves)

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WORLD STOCKS ROLLING HIGHER (0712 GMT)

An eventful weekend as a cyber attack forced the shutdown of much of the Colonial pipeline -- the source of half the U.S. East Coast's fuel supply. That's pushed up U.S. gasoline futures RBc1 2% while Brent crude futures are up almost 1%.

It raises the risk of gasoline shortages during the U.S. summer driving season but also of another surge in headline inflation, already seen on the rise in coming months.

Treasury yields are higher therefore, adding another two basis to a late-Friday rebound off two-month lows.

But with U.S. 10-year yields some 20 bps off recent 14-month highs, world stocks are rolling higher, hitting new record highs and European and U.S. futures indicating a robust session ahead.

Stocks are merely extending gains chalked up on Friday when a remarkably poor set of April jobs data allowed markets to push back Fed rate hike bets and sent the dollar to two-month lows. A perusal of the figures showed however, the huge miss maybe had more to do with hiring difficulties rather than jobs not being created.

In other news, pro-independence parties nabbed a majority of seats in the Scottish parliament, setting the stage for a tussle with the UK government over another independence referendum. The pound seems unfazed though, staying above $1.40; eyes possibly on the end of COVID-19 lockdowns, just a week away.

Also on the weekend, meme-inspired crypto Dogecoin lost a third of its value after Elon Musk, the billionaire Tesla chief called it a "hustle". He then proceeded to tweet that his SpaceX venture would be accepting Dogecoin as payment.

The main action though is on Ether which rose above $4000, hitting a record high for the third day straight.

Finally, earnings are winding down across the Atlantic but some 75 companies, including several banks, will report in Europe. Societe Generale leapt as much as 6.6% after it posted net 814 million-euro profit.


Key developments that should provide more direction to markets on Monday:


-New India coronavirus cases and deaths hold near record highs

- Earnings: British bakery chain Greggs raised its profit outlook after after a recovery in sales; Dignity reported a 35% jump in Q1 profit due as demand for funeral services rose

Euro zone Sentix index

Auctions: US 6-mth/3-mth bills

US earnings: Coty, Tyson Foods, Marriott, Occidental,

Europe earnings: Euronext, Centrica


(Sujata Rao)

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EUROPEAN SHARES SEEN UP ON HOPES FOR LOW RATES, UK ELECTION IN FOCUS (0545 GMT)

Europeans stocks are seen on the rise mirroring Asian stocks, which rose amid speculation that interest rates will remain low due to receding inflationary pressure, while the pound shoots up after Boris Johnson emerged stronger from local elections. nL1N2MW0J1

Sterling GBP=D3 is at its highest in more than two months against the dollar after local elections, but worries about Scottish independence could curb sterling's gains. nL1N2MW04M

Scottish leader Nicola Sturgeon told PM Johnson that another referendum on independence was inevitable after her party won a resounding election victory.

In the meantime, Sadiq Khan from Britain's opposition Labour Party was re-elected Mayor of London on Saturday, comfortably defeating Shaun Bailey from Prime Minister Boris Johnson's Conservative Party.

Oil and gas prices jumped after a cyber attack on a U.S. pipeline operator unnerved markets.

U.S. nonfarm payrolls data on Friday showed jobs growth unexpectedly slowed in April, which gave equities a lift. nL1N2MT2XD


(Joice Alves)

******