(Bloomberg) — European stocks and U.S. futures rose as global markets extended a rally fueled by optimism that American lawmakers will reach a stimulus deal.

The Europe Stoxx 600 Index rose 0.7% and the MSCI Asia Pacific Index notched a fourth day of gains. The S&P 500 jumped 1.7% on Wednesday after a barrage of overnight tweets from President Donald Trump advocating a piecemeal approach and Speaker Nancy Pelosi signaled openness to a standalone airline relief bill.

The dollar weakened, which helped boost commodities including oil and gold. Treasury yields were steady.



graphical user interface: Treasury volatility jumps most in a day since the onset of Covid turmoil in U.S.


© Bloomberg
Treasury volatility jumps most in a day since the onset of Covid turmoil in U.S.

“While the debate on a fiscal stimulus this side of the election rages on, the real question is whether markets are front running a ‘blue wave’ scenario?” Chris Weston, head of research at Pepperstone Financial in Melbourne, wrote in a note, referring to the possibility of Democrats winning the White House as well as the Senate. Another risk is whether “we will see an ugly contested scenario.”

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Minutes of the Federal Open Market Committee’s Sept. 15-16 meeting released Wednesday showed some U.S. central bankers sought further debate on the future of the Federal Reserve’s asset-purchase program, signaling they’d be open to altering or increasing bond-buying going forward.

Meanwhile, countries continue to grapple with rising coronavirus infections. France reported a record number of new cases and Italy’s infections spiked to the highest since April.

Regeneron shares gained 3.5% in late trading in New York after President Donald Trump said its an antibody cocktail was was the “key” to his quick recovery. Trump said he would authorize its emergency use.

Elsewhere in markets, crop futures are climbing as dry weather threatens planting in the Americas and Black Sea areas. Wheat has