Global stocks rebound, copper jumps to 16-month high, government bond yields climb to multi-month highs, and IEA warns of extended surplus if OPEC fails to cut production. Here are four things to know in the market on Thursday, November 10.
1. Global Stocks Rebound
U.S. markets pointed to a higher opening on Thursday. Dow futures were up 160 points to an all-time high, as investors hope Trump will boost infrastructure and healthcare sectors.
Stocks in the U.K. and Europe were broadly higher mid-morning. Germany’s DAX was up to its highest level of the year.
Shares in Asia jumped, with the Nikkei closing up 7%.
2. Copper Reaches 16-Month High
Copper futures soared 4.5% to $2.571 per pound. Copper benefited from speculation that a Trump presidency would spark a surge in infrastructure spending.
Prices were up by as much as 13.2 cents to $2.591, a 16-month high, earlier. The red metal gained over 3% on Wednesday after Trump gave his victory speech and pledged to rebuild America’s infrastructure.
3. Government Bond Yields Climb to Multi-Month Highs
Government bond yields across the globe tumbled on Thursday. Yields rallied to multi-month highs, as traders reevaluated a Trump presidency.
The U.S. 10-year Treasury note gained 0.4 basis points to 2.068%.
Ten-year German Bunds gained 9.8 basis points to 0.277%, its highest level since May. U.K. equivalent bonds were up by 8.4 basis points to 1.344%.
4. IEA Warns of Extended Oil Surplus
The International Energy Agency cautioned on Thursday that the oil supply glut may reemerge in 2017 if OPEC fails to implement a production cut.
According to the agency’s monthly report, global supply was up by 800,000 barrels per day to 97.8 million bpd. The gains were led by record-high OPEC output and increased production from non-OPEC members Kazakhstan, Russia, Canada and Brazil.
