US: Wall Street stocks end at record high as oil prices fall

[NEW YORK] Global stocks rose on Monday, with Wall Street hitting new records as investors waited for corporate results and economic data later in the week.

All three major US indices ended at records, reflecting how optimism over the economic recovery has offset worries about inflation and the Delta variant of Covid-19. The Dow finished just shy of 35,000 points.

London's FTSE 100 index and counterparts in Frankfurt and Paris closed higher after spending part or much of the day in the red.

Earlier, Asian equities had rallied after New York markets posted fresh records on Friday.

Investors are geared up for a heady earnings season, beginning on Tuesday with reports from JPMorgan Chase and Goldman Sachs.

The period is expected to be the second-strongest quarter in the last 25 years, according to CFRA Research's Sam Stovall.

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But analysts at DataTrek Research warned that earnings seasons "needs to be awesome" to extend the rally.

"We're reminded of the old market saying, 'buy the rumour, sell the news,'" DataTrek said in a note. "The first bit is happening right now. We will shortly see how the second part plays out."

However oil prices retreated following a two-day advance on concerns that new virus spikes could dent demand for the commodity as governments are forced to impose fresh containment measures.

Federal Reserve boss Jerome Powell is to deliver a policy report to US lawmakers this week, which will be closely watched for clues on the central bank's timeframe for shifting from a highly stimulative monetary policy.

New York Fed President John Williams told reporters on Monday that the recovery in key areas of the US economy is not sufficient enough for the central bank to start pulling back on its aggressive stimulus programme.

Traders will also monitor US inflation data later this week, as well as Chinese second-quarter growth figures.

AFP