Stocks Rise as High Profits Calm Trade Fears – Europe Market Wrap

Global equities rose as solid profits rekindled risk appetite in a market that had been thrown off course for days due to shifting trade war fears. Gold rose above $4,200 per ounce.

S&P 500 futures jumped 0.6% as the second day of big-bank results began, with Bank of America easily outperforming expectations for net interest income and trading revenue. Europe’s Stoxx 600 index soared as LVMH surged 15% on an unexpected return to growth. Meanwhile, Asia’s benchmark is poised for its largest advance since July.

The Dollar declined versus all major peers as bets on Fed rate cuts deepened and China increased its support for the yuan. The PBOC set the reference rate at its highest level in nearly a year, reducing outflows and boosting confidence.

Gold surged to a new high, driven by US-China tensions and anticipation of Fed easing. US Treasuries rose throughout the curve, with 10-year yields falling two basis points to 4.01%.

Strategists caution that trade news will remain in the spotlight as Washington and Beijing prepare for discussions.