* Global stocks on nine-day winning streak
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Asian markets mostly flat amid multiple holidays
* Platinum scales six-year highs on car bets
* Italian bond yields near recent lows, eyes on government
* Treasuries rally on surprisingly soft CPI, dovish Powell
* Oil eases after longest winning streak in two years
By Tom Arnold
LONDON Feb 11 (Reuters) - Global shares rose for a ninth day
running on Thursday, just off record highs, as investors
digested recent gains, while bulls were sustained by the promise
of more free money after a benign U.S. inflation report and a
dovish Federal Reserve outlook.
European stocks were higher, with the STOXX 600 .STOXX
gaining 0.4% and London's FTSE 100 .FTSE up 0.1%. That
followed a subdued Asian session as markets in China, Japan,
South Korea and Taiwan were closed for holidays.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS added 0.2%, having already climbed for four
sessions to gain more than 10% so far this year.
Investors were also reflecting on the first phone call
between U.S. President Joe Biden and his Chinese counterpart, Xi
Jinping, where Biden said a free and open Indo-Pacific was a
priority and Xi warning confrontation would be a "disaster" for
both nations. With Chinese markets closed, there was little reaction to
news the Biden administration will look at adding "new targeted
restrictions" on certain sensitive technology exports to China
and would maintain tariffs for now. Futures for the S&P 500 ESc1 were 0.3% higher, having hit
historic highs on Wednesday.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 countries, was 0.1% higher. That was not far from
peaks reached the day before and just sustaining a nine-day
streak of gains, a first since October 2017.
"The story really is still U.S. equities first and
foremost," said James Athey, investment director at Aberdeen
Standard Investments. "Earnings season has been especially
strong in the U.S., the fiscal stimulus coming from the Biden
administration is getting bigger in the market's mind and most
of the big winners from the pandemic are U.S. listed.
"Only the Fed can rock the boat and with yesterday's
disappointing inflation print that prospect has just slipped
even further into the future."
The outlook for more global stimulus got a boost overnight
from a surprisingly soft reading on core U.S. inflation, which
eased to 1.4% in January. Federal Reserve Chair Jerome Powell said he wanted to see
inflation reach 2% or more before even thinking of tapering the
bank's super-easy policies. Notably, Powell emphasised that once pandemic effects were
stripped out, unemployment was nearer 10% than the reported 6.3%
and thus a long way from full employment.
As a result, Powell called for a "society-wide commitment"
to reducing unemployment, which analysts saw as strong support
for President Joe Biden $1.9 trillion stimulus package.
Westpac economist Elliot Clarke estimated over $5 trillion
in cumulative stimulus, worth 23% of GDP, would be required to
repair the damage done by the pandemic.
"Financial conditions are expected to remain highly
supportive of the U.S. economy and global financial markets in
2021, and likely through 2022," he said.
The mix of bottomless Fed funds and a tame inflation report
encouraged bond markets, leaving 10-year yields at 1.15%,
US10YT=RR down from a 1.20% high early in the week.
Italian bond yields remained near recent lows before a
long-term bond auction and as Mario Draghi was expected to
present his new government coalition in the next few days.
Italy's 10-year BTP, or government bond, yield IT10YT=RR was
down one basis point down at 0.490%, near its lowest since early
January.
After the U.S. inflation report and the Fed's Powell
reiterating that rates could stay lower for longer, the dollar
was lower on the day at 90.391 =USD , away from a 10-week top
of 91.600 touched late last week.
Gold was down 0.1% at $1,841.28 per ounce, as investors
drove platinum XPT= to a six-year peak on bets of more demand
from car makers. GOL/
Oil prices dipped, having enjoyed the longest winning streak
in two years amid producer supply cuts and hopes vaccine
rollouts will drive a recovery in demand. O/R
Brent crude LCOc1 futures eased back 61 cents to $60.99.
U.S. crude CLc1 dipped 42 cents to $58.27 a barrel.
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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
MSCI world stock index cruising at record highs https://tmsnrt.rs/3qaUqvu
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