Europe’s Travel Sector Soars, S&P 500 to Break 3000 Barrier

World shares forged ahead on Tuesday and commodity markets drove higher as well, as investors shrugged off Sino-U.S. tensions to focus on more stimulus in China and a re-opening world economy, Reuters reported.

Britain’s FTSE and Japan’s Nikkei led their regions with 1.2% and 2.2% gains, while the S&P 500 was preparing to go above 3,000 points for the first time since early March, when the economic impact of the coronavirus was just becoming clear.

Europe was powered by a near 7% surge in travel and leisure stocks, including at 35% gain by holiday firm and 20% jump in British Airways owner IAG, after Spain said that quarantine-free tourism would resume next month and as Germany edged towards a 9 billion-euro bailout of airline Lufthansa.

Italian, Spanish and other southern euro zone government bonds also gained on the hopes, and a weaker dollar helped the euro and the pound.

MSCI’s broadest index of Asia-Pacific shares outside Japan had advanced 1.7% overnight, with South Korea up 1.75% and Chinese blue chips 1.1% higher after the country’s central bank said it would continue to push to lower interest rates on loans.

Yields on U.S. 10-year notes were trading at nearly 0.69% after rising to 0.68% last week, when the market absorbed a wave of new issuance.

The gains in U.S. yields might have weighed on the dollar but with rates everywhere near or less than zero, major currencies have been holding to tight ranges.

The dollar was down against the yen at 107.52, still within the 105.97 to 108.08 band that has lasted since the start of May. The euro gained to $1.0954, having spent the month so far between $1.0765 and $1.1017.

Against a basket of currencies, the dollar was 0.5% lower at 99.160 but still sandwiched between support at 99.001 and resistance around 100.560.

In commodity markets, gold edged down 0.3% to $1,723 an ounce.

Oil prices were supported by falling supplies as OPEC cut production and the number of U.S. and Canadian rigs dropped to record lows for the third week running. Brent crude futures rose 71 cents to $36.24 a barrel. U.S. crude gained $1.14 to $34.39.