Stocks rise on easing Mideast tension; gold drops: markets wrap

Stocks rose across Europe and Asia alongside US equity futures on Thursday, extending a relief rally after America and Iran appeared to step back from a deeper military conflict. The yen and gold declined and oil steadied after a plunge.

The Stoxx Europe 600 Index jumped at the open, setting the stage for a third day rising as every industry sector except energy and real estate climbed. Contracts on the S&P 500 pointed to further gains on Wall Street a day after the underlying gauge advanced when President Donald Trump’s measured remarks on Iran suggested tensions were easing. The major equity benchmarks in Asia all rallied as the region’s bond yields also climbed.

“The backdrop remains benign for equities,” Mona Mahajan, an investment strategist at Allianz Global Investors, told Bloomberg TV. “Low rates, low inflation and low growth. A mild Goldilocks in many ways.”

It’s been a roller coaster start to 2020 for global markets as investors grapple with America’s killing of an Iranian military leader and its aftermath. Wednesday saw risk assets begin to climb again while havens and oil turned lower amid signals from both sides there will be no further escalation.

If the relative geopolitical calm holds it will allow traders to switch focus to the next clues on the health of the world’s biggest economy, which will come with the non-farm jobs report on Friday.

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