Global Stock Markets Near Record Levels Ahead Of U.S. Fed Meeting

Stock markets around the world were at or near record highs on Monday (June 14) as worries about rising inflation decreased and investors anticipate that the U.S. Federal Reserve will stick to its dovish course when it meets in coming days.

The MSCI world equity index and Europe's STOXX 600 index reached record highs Monday, lifted by the prospect of a broadening economic recovery from COVID-19 and anticipation of dovish monetary policy from central banks, notably the U.S. Federal Reserve.

S&P 500 futures nudged 0.1% higher with investors taking in stride above-forecast U.S. inflation data and surging factory prices in China that were released at the end of last week.

Yields on the 10-year U.S. Treasuries stood at 1.4602%, with investors seemingly relaxed about the prospect of rising inflation.

Many investors expect the U.S. Federal Reserve to repeat its dovish view at its two-day meeting that begins on Tuesday (June 15). While some observers have said the central bank should start discussing tapering its bond buying, most investors think the Fed will continue to wait.

Markets in Asia were calm Monday with exchanges in China, Hong Kong and Australia closed for a holiday. Japan's Nikkei index rose 0.7%, while MSCI's broadest index of Asia-Pacific shares outside Japan was down a slight 0.2%.

In currencies, the Euro slumped after the European Central Bank last week showed no willingness to reduce its stimulus and traded at $1.2109. The Japanese Yen was little changed at 109.68, while the British pound changed hands at $1.4108, near the lower end of its trading range over the past month.

Bitcoin rose 13% to $39,267 over the weekend after Elon Musk said Tesla could resume using the digital coin.