Global stocks again hit a record high and oil rose on Tuesday, as markets shrugged off concerns about rising inflation and looked ahead to U.S. data later in the week that should offer a major clue to the health of the world economy.
Later in the week, Friday's U.S. jobs data should also give a firmer steer on near-term Fed policy action.
"Although global stocks are now around 20% above pre-pandemic highs, a combination of strong earnings growth and reasonable valuations relative to still-low bond yields points to further upside for stocks," said Mark Haefele, Chief Investment Officer, UBS Global Wealth Management.
South Korean stocks (.KS11) rose 0.6% after a jump in May exports, and Chinese stocks (.CSI300) climbed 0.2% after data showing factory activity expanded at the fastest pace this year in May.
Though U.S. inflation data last week was above estimates, another big miss on the jobs front would delay prospects for any wind-down of stimulus, analysts say.
Mark Haefele, Sebastien Galy
UBS Global Wealth Management, Federal Reserve, Generale, NFP, Brent, Thomson
COVID, U.S, Europe, Asia, Pacific, Japan