Commodities push global stocks higher

Global stocks headed for their first weekly gain in three weeks amid a surge in commodity prices, while traders braced for a U.S. jobs report later on Friday that could provide clues on when the Federal Reserve will ease back on monetary stimulus.

European stocks opened higher, with the pan-European STOXX 600 index hitting a record high as strong data from Germany and other major economies added to hopes of a swift recovery from the pandemic shock. The German DAX rose 0.8%, inching closer to its life high, while France’s CAC 40 hit its highest since November 2000 and Britain’s FTSE 100 breached the 7,100 mark. MSCI’s benchmark for global equity markets, which tracks stocks in 50 countries, edged up about 0.1%, on course for a 0.4% gain this week.

Its broadest index of Asia-Pacific shares outside Japan rose about 0.5% on Friday, while Japan’s Nikkei gained about 0.2%. China’s blue chips swung between gains and small losses, despite data Friday showing an unexpected pick-up in the nation’s export growth.

Aluminum prices approached levels last seen in 2018 and copper hit an all-time high as investors bet on a rapid global recovery from the pandemic, led by the United States.

Overnight, Wall Street investors piled into economically-sensitive stocks on the reflation trade, driving the Dow Jones Industrial Average to a record high close on Thursday. The Dow rose 0.9%, the S&P 500 gained 0.8% and the Nasdaq Composite added 0.4%.

Financials and industrials led Thursday’s rally in U.S. shares after a report showed the number of Americans filing new claims for unemployment benefits fell below 500,000 last week for the first since the COVID-19 pandemic started, signalling the labour market recovery entered a new phase amid a booming economy.

Gold headed for a 2.5% weekly gain, the most since December, as the weaker dollar and easing Treasury yields propelled the precious metal, an inflation hedge, above the psychological $1,800-anounce level to last trade at around $1,818.