(Bloomberg) — U.S. stocks look poised to extend last week’s rally as investors bet on the strength of the economic recovery, despite rising virus infection rates.The dollar weakened, while gold neared a seven-year high. Gains across retail and health-care shares helped the Stoxx Europe 600 Index erase an early retreat. Hong Kong stocks slumped after China moved to tighten oversight of the city. Crude oil hovered below $40 a barrel in New York.Even as virus cases rise in Germany and U.S. states of Florida, California and Texas, there’s growing speculation that politicians will be unwilling to put cities back on lockdown because of the economic toll. At the same time, markets have been supported by historic stimulus programs by central banks around the world, with policymakers vowing to get growth back on track.In the U.K., Prime Minister Boris Johnson is preparing to relax social distancing rules in a major boost to the U.K.’s hospitality industry, as the government seeks to re-open more sectors of the economy that have been shut during the lockdown.“The market doesn’t believe that we will see such draconian lockdowns even if there is a resurgence of the virus. The politics have moved on,” said James Athey, a money manager at Aberdeen Standard Investments. “Rightly or wrongly, there’s also a pretty widespread feeling that riskier assets won’t go down too far, because the Federal Reserve won’t let them.”In Turkey, the benchmark equities index erased its 2020 losses, lifted in a rally driven mostly by a wave of buying from local investors.Here are some key events coming up:MSCI Inc. on Tuesday announces its market classification review for 2020.The IMF will release new 2020 growth projections on Wednesday.U.S. jobless claims, durable goods and GDP data are due Thursday.A rebalance of Russell indexes is due on Friday.These are the main moves in markets:StocksFutures on the S&P 500 Index climbed 1.1% as of 10:17 a.m. New York time.The Stoxx Europe 600 Index gained 0.1%.The U.K.’s FTSE 100 Index was little changed.The MSCI Asia Pacific Index increased 0.2%.The MSCI Emerging Market Index advanced 0.6% to 1,001.36.CurrenciesThe Bloomberg Dollar Spot Index decreased 0.3% to 1,216.76.The euro climbed 0.4% to $1.1222.The British pound jumped 0.6% to $1.2424.The onshore yuan weakened 0.1% to 7.078 per dollar.The Japanese yen weakened 0.1% to 106.93 per dollarBondsThe yield on 10-year Treasuries dipped less than one basis point to 0.69%.The yield on two-year Treasuries gained less than one basis point to 0.19%.Germany’s 10-year yield fell one basis point to -0.42%.Britain’s 10-year yield jumped one basis point to 0.238%.Japan’s 10-year yield sank one basis point to 0.01%.CommoditiesWest Texas Intermediate crude increased 0.1% to $39.78 a barrel.Brent crude advanced 0.3% to $42.32 a barrel.Gold strengthened 0.2% to $1,747.94 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
