The roaring stock rally of the past six days week took a breather on Tuesday, with futures dipping from a record high of 3,913 as investors sifted through earnings and weighed the impact of soaring inflation expectations which saw 10Y Breakeven rates hit 7 year highs amid signs the Biden administration is committed to passing a sizable aid bill..
The MSCI All-Country World Index edged up 0.1% to its own record high, although early moves in Europe’s top indexes suggested further gains may be tougher to find, with Britain’s FTSE 100 flat on the day even as a record high close for Wall Street overnight gave Asian stocks the confidence to push on further, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.3%, led by Chinese blue chips, up 2.2%.
European equities turned red after a choppy start even as bitcoin powered on, rising above $48,000 overnight following widespread speculation that more companies will follow Tesla in purchasing the cryptocurrency outright. Oil reversed its recent rally while the dollar slide accelerated. Futures for the S&P 500 were modestly in the red, suggesting a quiet start to the U.S. trading day.