Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Read more
Sign In
June 25, 20214:20 AM PDTLast Updated a month ago
Middle East
Shares approach record peak on U.S. infrastructure bill, oil up
Carolyn CohnAndrew Galbraith

5 minute read
A trader works at the trading floor of KBC bank in Brussels, Belgium August 25, 2015. REUTERS/Yves Herman/File Photo
MSCI world index up 0.13% on day, over 2% on week
Oil on track for 5th weekly gain
European stocks rise 0.1% towards recent record highs
LONDON, June 25 (Reuters) - Global equities edged towards record highs on Friday after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal, raising hopes for an extended rebound in the world's largest economy, and a tight supply outlook boosted oil.
Investors have been looking to an infrastructure agreement to extend the U.S. recovery after massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter. The plan is valued at $1.2 trillion over eight years, $579 billion of which is new spending. read more
"The positive market tone recognizes the potential growth benefits of the compromise, but with the smaller size tempering some of the tax implications to pay for it," said Kerry Craig, global market strategist at J.P. Morgan Asset Management.
MSCI's all-country index (.MIWD00000PUS) rose 0.13%, nearing a record high reached on June 15 and bringing gains for the week to more than 2%.
European stocks (.STOXX) rose 0.1% towards record highs hit this month, after the S&P 500 (.SPX) gained 0.58% and the Nasdaq Composite (.IXIC) added 0.69%, lifting both indexes to record-high closes. The Dow Jones Industrial Average (.DJI) rose 0.95%.
Germany's DAX (.GDAXI) was steady and Britain's FTSE index (.FTSE) was up 0.14%.
Monetary and fiscal stimulus around the world in response to the COVID-19 pandemic is boosting financial assets, despite an uneven pace of recovery between regions, said Eddie Cheng, head of international multi-asset portfolio management at Wells Fargo Asset Management.
"Bonds go up, equity goes up, commodities go up - that is very much a liquidity-driven market," Cheng said.
Oil prices climbed for a third successive session, and were on track for a fifth consecutive weekly gain, as growth in demand is expected to outstrip supply on bets that OPEC+ producers will be cautious in returning more output to the market from August.
U.S. West Texas Intermediate crude rose 0.2% to $73.40 per barrel and global benchmark Brent crude was at $75.70, up 0.19% on the day.
Both benchmark contracts settled on Thursday at their highest levels since October 2018.
Securing bipartisan agreement on the infrastructure deal required Biden to sacrifice some of his ambitions on schools, climate change mitigation and support for parents and caregivers, as well as tax increases on the rich and corporations. read more
But alongside growth expectations, markets are also fretting about inflation.
The core personal consumption expenditures index, an inflation gauge tracked closely by the Federal Reserve, is expected to post year-on-year gains of 3.4% later on Friday.
Benchmark 10-year U.S. Treasuries , which saw yields dip after the infrastructure bill announcement, were last at 1.4901%, up from a close of 1.487% on Thursday.
Germany's 10-year yield, the benchmark for the euro area, was little changed at -0.179% .
In the currency market, the dollar index was down 0.12% at 91.73 as investors continued to weigh the likelihood of Fed tightening in the face of persistent inflation.
The Japanese yen was steady at 110.76 and the euro gained 0.13% to $1.1946.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose nearly 1%, and Chinese blue chips (.CSI300) rallied 1.63%.
Hong Kong's Hang Seng (.HSI) added 1.4%, Seoul's Kospi (.KS11) was up 0.51% and Australian shares (.AXJO) climbed 0.45%. Japan's Nikkei (.N225) rose 0.66%.
Spot gold was up 0.35% at $1,781.55 an ounce, on track for its first weekly rise in four.
Additional reporting by Tom Westbrook in Singapore; Editing by Ana Nicolaci da Costa, Kim Coghill and Timothy Heritage
Our Standards: The Thomson Reuters Trust Principles.
More from Reuters
Play video on original page

Read Next
Tunisian democracy in turmoil after president sacks government
4:50 PM PDT
United States
Trump ally Barrack pleads not guilty in UAE lobbying case
4:19 PM PDT
Middle East
Biden, Kadhimi seal agreement to end U.S. combat mission in Iraq
2:47 PM PDT
Middle East
U.S. issues 'Do Not Travel' advisories for Spain, Portugal over COVID-19 cases
2:48 PM PDT

Sign up for our newsletter
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Middle East
Middle East · 4:50 PM PDT
Tunisian democracy in turmoil after president sacks government
Tunisia is facing its worst crisis in a decade of democracy on Monday after President Kais Saied ousted the government and suspended parliament with help from the army, a move denounced as a coup by the country's main parties, including Islamists.
Middle East
Lebanese PM-designate Mikati aims to form gov't to implement reform plan
8:25 AM PDT
Middle East
Biden, Kadhimi seal agreement to end U.S. combat mission in Iraq
2:47 PM PDT
Middle East
France says Iran endangers compromising chance for nuclear deal
10:55 AM PDT
Middle East
Israeli government wants more ultra-Orthodox men to work, but faces pushback
5:35 AM PDT
About Reuters
About Reuters
Reuters News Agency
Brand Attribution Guidelines
Reuters Leadership
Reuters Fact Check
Reuters Diversity Report
Stay Informed
Download the App
Information you can trust
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Follow Us
Thomson Reuters Products
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Refinitiv Products
Information, analytics and exclusive news on financial markets - delivered in an intuitive desktop and mobile interface.
Refinitiv Data Platform
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
Advertise With Us
Advertising Guidelines
Terms of Use
Site Feedback

All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved