Daily Dose

Stocks Rise on Positive Rate Cut and Bank Earnings – Europe Market Wrap

Gains in stocks and bonds were driven by optimism that the Federal Reserve will begin reducing interest rates this year as well as a run of positive reports.

Based on Wall Street’s Monday advances, the Stoxx 600 index reached its highest point in over a month. After the S&P 500 closed 1% higher and above its 50-day average price, US equities futures remained stable. The yield on ten-year Treasuries dropped three basis points to 4.46% as they continued to rise.

As firms continue to surprise investors with strong earnings, investors are becoming more optimistic that the Fed will be able to begin unwinding its higher interest rates. HSBC strategists indicate that a significant increase has occurred in the proportion of European companies that reported first-quarter earnings that exceeded expectations.