(Adds U.S. markets open; changes byline, dateline; previous
LONDON)
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Reuters Live Markets blog: LIVE/
By Suzanne Barlyn
NEW YORK, March 1 (Reuters) - Stock markets rose on Monday,
with investors taking lower U.S. bond yields in stride as a
sweeping $1.9 trillion U.S. coronavirus relief bill and
distribution of Johnson & Johnson's JNJ.N newly authorized
COVID-19 vaccine spurred Wall Street's enthusiasm.
Wall Street's rise followed a jump in European shares and
solid gains in Asian stock markets.
"We got a pretty good bounce back from the selling at the
end of last week," said Rick Meckler, partner at Cherry Lane
Investments, a family investment office in New Vernon, New
Jersey. "Investors have started to refocus on the idea that the
pandemic could be drawing to a close."
The Dow Jones Industrial Average .DJI rose 657.73 points,
or 2.13%, to 31,590.1, the S&P 500 .SPX gained 82.71 points,
or 2.17%, to 3,893.86 and the Nasdaq Composite .IXIC added
300.97 points, or 2.28%, to 13,493.31.
The much-anticipated $1.9 trillion COVID-19 relief bill was
passed in the U.S. House of Representatives on Saturday, and now
moves to the Senate. The pan-European STOXX 600 index .STOXX rose 1.85% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.87%.
Emerging market stocks rose 1.77%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.76%
higher, while Japan's Nikkei .N225 rose 2.41%.
Major sovereign bonds rallied on Monday as markets showed
further signs of stabilization after their worst monthly
performance in years. Expectations of economic recovery and rising inflation
boosted global benchmark bond yields in February to their
biggest monthly rises in years. But in the meantime, the
expected run-down of U.S. Treasury balances at the U.S. Federal
Reserve has held down shorter-dated rates.
Benchmark 10-year Treasury notes US10YT=RR last rose 6/32
in price to yield 1.4376%, from 1.456% on Monday.
Sebastien Galy, senior macro strategist at Nordea Asset
Management, noted that the benchmark Treasury yield has settled
below the one-year highs over 1.60% touched last week, even as
the Fed and others like the European Central Bank refused to
intervene and cap rising yields.
"This is most likely the end of this temper tantrum and
presents opportunities for investors faced with dislocated
markets," he said.
PENT-UP DEMAND
PMI data for February is also in focus this week. Germany's
factory activity rose to its highest level in more than three
years last month, driven by higher demand from China, the United
States and Europe. Manufacturing in Japan grew at its fastest pace in more than
two years in February, as strong orders led to the first output
rise since the start of the pandemic. But China's factory activity grew at a slower pace than in
the previous month, missing market expectations, after COVID-19
related disruptions earlier in the year. U.S. crude CLc1 recently rose 0.31% to $61.69 per barrel
and Brent LCOc1 was at $64.81, up 0.61% on the day.
The dollar index rose to a three-week high on Monday as
investors bet on faster growth and inflation in the United
States, while the Australian dollar gained after Australia's
central bank increased its bond purchases in a bid to stem
rapidly rising yields. "The dollar is trading relatively bid on the yield
differential, on the growth expectation differentials," said
Boris Schlossberg, managing director of FX strategy at BK Asset
Management in New York.
Bitcoin BTC=BTSP rose 6.69% to $48,275 but was still off a
record high of $58,354.14 hit on Feb. 21.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
Germany 10-year https://tmsnrt.rs/3sEKmfo
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>