(Bloomberg) — European stocks traded near record highs, global bonds rose and gold extended its surge amid conviction US and euro-area interest rates will fall in coming months, a view economists expect will be backed by American jobs data later Friday.
The pan-European Stoxx 600 index was steady and on track for a seventh week of gains, after a weaker inflation forecast from the European Central Bank reinforced the view that monetary easing will begin in June. That was followed by Federal Reserve Chair Jerome Powell suggesting the Fed is getting close to the confidence it needs to start lowering rates. US equity futures kept to narrow ranges.
Powell’s comments sent benchmark 10-year Treasury yields to a one-month low, while the dollar skidded for the sixth day in a row. Gold surged above $2,160 an ounce, rising for an eighth day. In currency markets, the yen extended gains on wagers the Bank of Japan will exit its ultra-loose…
