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Global shares held near record highs on Monday while U.S. bond yields flirted with three-month lows as investors expect the Federal Reserve to stick to its dovish mantra later this week.

Activity was limited with the region’s largest markets - China, Hong Kong and Australia - closed for a holiday.

Globally, markets were basking in the prospect of a broadening economic recovery from the coronavirus pandemic and anticipation of continuity in dovish monetary policy from the U.S. Federal Reserve. Oil stood at multi-year highs.

 

·         U.S. stock futures are little changed with the S&P 500 at a record high

U.S. stock futures were steady in early morning trading Monday as investors digested the S&P 500′s record level heading into a week with a key Federal Reserve meeting.

Dow futures rose 18 points. S&P 500 futures and Nasdaq 100 futures both traded in mildly positive territory.

Global shares held firm near record highs on Monday while U.S. bond yields flirted with three-month lows as investors expect the Federal Reserve to stick to its dovish mantra later this week.

Japan's Nikkei (.N225) rose 0.35% while MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.1%. Activity was limited with the region's largest markets - China, Hong Kong and Australia - closed for a holiday.

Globally, equity markets were basking in the prospects of a broadening economic recovery from the coronavirus pandemic and anticipation of continuity in dovish monetary policy from the U.S. Federal Reserve.

The MSCI all-country world equity index (.MIWD00000PUS), the U.S. S&P 500 (.SPX) and the pan-regional STOXX Europe 600 index (.STOXX) all closed at record highs on Friday.

The rally came even as U.S. inflation data on Thursday exceeded market expectations.

Many investors expect the Fed to repeat its dovish view at its two-day meeting from Tuesday.

 

·         Japanese shares inch higher, Toshiba up after ouster of board directors

Japanese shares rose on Monday as cyclicals such as tyre makers and shippers led gains on global recovery hopes, while Toshiba rose after the company said two of its board directors will retire amid its governance crisis.

The Nikkei share average gained 0.74% to 29,161.80, its highest close since May 10. The broader Topix rose 0.29% to 1,959.75.

The gains came as U.S. stocks closed modestly higher on Friday, with the S&P 500 hitting a record high closing, while the Nasdaq gained the most among three major indexes.

Toshiba gained 2.7% after the conglomerate, which is facing a deepening crisis over corporate governance, said it would change its board director nominees for an upcoming shareholders meeting and its two board directors would retire.

The pan-European Stoxx 600 gained 0.5% in early trade after closing last week at a record high. Tech stocks stocks climbed 1.1% to lead gains as almost all sectors and major bourses nudged into positive territory.

Reference:  Reuters, CNBC