(Adds the last numbers)
* The MSCI Global Index for all countries is growing, without reaching a record peak
* Yields in Germany reached their highest level since March 2020.
* Markets in the UK, China and Japan are closed for public holidays.
* Graphic: Global Asset Performance tmsnrt.rs/2yaDPgn
* Graphics: World exchange rates tmsnrt.rs/2egbfVh
NEW YORK / LONDON, May 3 (Reuters) – Gold prices rallied and global equity markets were close to record highs on Monday as investors remain bullish on the economic recovery ahead of new corporate results and US data. which are expected to emphasize the strength of the rebound.
The dollar fell against a basket of currencies as Treasury yields fell on data showing that manufacturing activity in the US grew at a slower pace in April.
The 10-year Treasury yield fell 2.3 basis points to 1.6082% after resource constraints curbed output as massive fiscal stimulus and rising COVID-19 vaccinations fueled pent-up demand.
The dollar index fell 0.3%, making gold more readily available to holders of other currencies, while lower Treasury yields reduced the opportunity cost of owning interest-free gold.
In Europe, shares closed higher after the European Commission outlined plans to ease COVID-19 travel restrictions. Strong data on factory and retail sales, as well as a strong earnings season, added optimism to investors.
The pan-European STOXX 600 Index rose 0.6%, while the MSCI benchmark index for global equity markets rose 0.36% to 704.37, down about 0.5% from last week’s record high.
On Wall Street, the Dow Jones Industrial Average rose 0.91% and the S&P 500 rose 0.53%. The Nasdaq Composite fell 0.29%.
Drop in high-tech stocks and related stocks, including Amazon.com Inc
Markets in China, Japan and the UK were closed due to public holidays, resulting in lower trading volumes.
According to Refinitiv IBES, profits for S&P 500 companies will grow 46.3% in the first quarter compared to the same period last year, nearly double the forecast for the rate at the beginning of April.
Of the 303 companies that have submitted reports so far, 87.1% beat analysts’ estimates, more than 20 percentage points above the long-term average, Refinitiv said.
German retail sales data for March came in well above expectations, highlighting that the US-led economic recovery is now picking up steam elsewhere.
But some economists believe businesses can get ahead of themselves and are more dependent on the success and speed of COVID-19 vaccination adoption.
“The data has been unrealistically strong in recent months – while the mainstream economy is doing very well, production growth is not quite at the stratospheric level that the polls suggest,” said UBS economist Paul Donovan.
A busy week on the back of US economic data is expected to show strong momentum, especially with regard to the ISM Manufacturing Survey and April employment data.
The yields on eurozone government bonds reversed earlier results to track the decline in US Treasuries amid manufacturing activity in the US.
German benchmark 10-year yields fell 0.3 basis points to -0.203%, having risen earlier to their highest level of -0.162% since March 2020.
Yield growth in Germany accelerated last week, as German inflation further exceeded the European Central Bank’s target and US data showed economic growth accelerated in the first quarter.
The dollar index fell 0.335%, the euro rose 0.39% to $ 1.2065. The Japanese yen gained 0.13% against the US dollar to hit 109.09 per dollar.
Spot gold prices rose 1.40% to $ 1,793.42 an ounce.
Ethereum’s cryptocurrency hit a new all-time high, surpassing $ 3,000 as investors gambled on wider adoption. Its gain of 325% by 2021 surpassed that of its larger rival bitcoin.
Oil rose more than 1% as China’s economic performance and US vaccination rates pointed to a sharp rebound in demand in the world’s two largest economies.
Brent crude oil futures climbed 80 cents to $ 67.56 a barrel. US oil futures rose 91 cents to $ 64.49 a barrel.
US gold futures rose 1.4% to $ 1,791.80 an ounce.
Reporting by Herbert Lasch, additional reporting by Wayne Cole in Sydney and Yoruk Bahceli in Amsterdam Editing by Chizu Nomiyama, Will Dunham and Lisa Schumaker