Shares lifted to record highs by lockdown easing, benign Fed

* Europe's STOXX index up 0.3%

* S&P futures reach another peak, Nikkei lags

* Asian stock markets : Link

* Fed sticking to stimulus, Powell set to speak

* Treasury yields dip, leaving dollar aimless

By Huw Jones

LONDON, April 8 (Reuters) - Stocks in Europe reached record highs on Thursday, buoyed by optimism in Britain over easing lockdown restrictions, while a benign outlook for U.S. interest rates was set to push Wall Street to new heights.

The European STOXX .STOXX index of leading 600 companies rose 0.3%, hitting a new high of 436.66 points. London's blue chip FTSE 100 index .FTSE was up 0.2%.

"It's looking good as evaluations in Europe are much lower than they are in the U.S. so there is potentially more upside. The line of least resistance for European markets is higher," said Michael Hewson, chief market analyst at CMC Markets.

"In terms of economic re-opening, there is enough optimism built in at the moment to drive markets quite a bit higher from here, and the Fed has reiterated it's going to remain on hold for a while," Hewson said.

Minutes of the Federal Reserve's last policy meeting, published on Wednesday, showed members felt the economy was still far short of target and were in no rush to scale back their $120 billion a month of bond buying.

Fed Chairman Jerome Powell speaks at an International Monetary Fund event later on Thursday and is likely to reiterate the dovish outlook.

The European Central Bank was due to publish accounts for its March 11 policy meeting amid debate about when it should start tapering its pandemic stimulus, with the euro area recovery still in doubt.

Wall Street was also set to reach fresh peaks on Thursday with e-mini futures on the S&P 500 ESc1 rising 0.25% after rising to a record high, and Nasdaq futures NQc1 up 0.7%

Gains by U.S. Treasuries US10YT=TWEB also helped, although analysts said markets will be tested next week when the U.S. earnings seasons gets underway.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.3% in quiet trade. Japan's Nikkei .N225 slipped 0.3%, not helped by news Tokyo's governor had asked for emergency measures to stem a surge of COVID-19 infections.

Yields on 10-year Treasuries US10YT=TWEB have eased back to 1.669% from the recent 14-month high of 1.776%, but have struggled to break under 1.59%.

The decline coincided with a dip in the dollar index to 92.360 =USD from its recent five-month high at 93.439.

The euro was steady at $1.1871 EUR= , after rising as high as $1.1914 overnight following a surprisingly upbeat survey of European Union business activity.

In commodity markets, gold was at $1,743 an ounce XAU= after meeting resistance around $1,745.

Oil prices fell after official figures showed a big increase in U.S. gasoline stockpiles, causing concerns about demand for crude weakening in the world's biggest consumer of the resource at a time when supplies around the world are rising.

Brent LCOc1 fell 22 cents to $62.94 a barrel. U.S. crude CLc1 lost 37 cents to $59.40 per barrel.

Asia stock markets Link
Asia-Pacific valuations Link

Aditional reporting by Wayne Cole and Chibuike Oguh; editing
by Larry King

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.