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.

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FX Overnight News:

• Globally, risk assets have rallied since mid-March on a flood of central bank and government support for economies reeling from coronavirus-induced lockdowns world over.
• A second-wave of coronavirus infections, hitting Europe in particular, has resulted in the imposition of more restrictions, prompting fears of a further economic slowdown.
• With the euro zone’s 750 billion euro recovery fund not expected to yield results until next year, the pressure on the ECB to keep reflating the economy is not going away any time soon.
• Oil prices edged higher Thursday as the approach of Hurricane Delta caused production in many of the rigs in the Gulf of Mexico to be halted. Gains are small though, as fuel demand concerns persist with crude oil supplies rising.

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FX Overnight Volatility:

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Chart of The Day:

Sources: Bloomberg, Investing