Global stocks climb, euro edges up, yields retreat from multi-year highs

2% Oil dips, euro edges up from 17-month lows Long-dated Treasury yields near multi-decade highs (Updates after European open) By Stella Qiu and Medha Singh Oct 6 (Reuters) — European stocks rose on Tuesday, extending a global equity rally as investors turned more optimistic ahead of earnings season, while easing pressure in longer-dated bonds and lower oil prices helped calm markets after last week's fixed-income turmoil. 1239 after sliding to a 17-month low overnight, although concerns about the euro zone's fiscal outlook persisted.

A selloff in French bonds triggered by last week's unpopular budget proposal showed signs of spreading across the euro zone at the start of this week. Political uncertainty also increased after Spanish Prime Minister Pedro Sanchez called a snap election on Monday. Bond markets stabilised on Tuesday. 77% after surging to its highest since the 2000s last week.

Far-right leader Marine Le Pen, the frontrunner in next spring's presidential election, said she wanted to cut France's budget deficit to 3% by 2030. "European sovereigns have had a little bit of pressure coming off and France is looking in a better position overnight," said James Klempster, deputy head of multi-asset at Liontrust in London. "On the one hand you've got quite material pressure being felt on the government bond side. But elsewhere the corporate side of things actually don't look too bad.

You've got companies whose earnings remain very robust. " The pan-European STOXX 600 rose 1%, its third straight session of gains. 2% after a technology-led rally lifted the Nasdaq to a record close on Monday. Third-quarter earnings season begins next week.

Goldman Sachs estimates consensus forecasts imply 27% growth in S&P 500 earnings, with more than half that coming from companies benefiting from AI infrastructure spending. 8 trillion. 9% overnight as resilient Middle East crude exports and a G7 emergency stockpile release eased supply concerns, though ongoing security risks in the region limited losses. Most Asian markets rose.

7%, while South Korean shares fell nearly 1% after reopening following a holiday. Bond Worries Linger Although the bond selloff showed signs of easing, sovereign yields remained near multi-year highs as investors grappled with persistent inflation and debt concerns. 79 bps after widening last week to its highest level since the euro zone debt crisis in 2011. 44%.

"We don't think there's a similar crisis happening as 15 years back with Greece and the European Union," said Christian Nolting, global chief investment officer at Deutsche Bank Private Bank, adding that the European Central Bank now has some backstop tools to deal with episodes of market stress. Long-dated US Treasury yields also eased after touching fresh 24-year highs overnight. 6356%. Yields have risen sharply even as markets scaled back expectations of a Federal Reserve rate increase this month to 22% from 71% a week earlier, following a soft US jobs report and policymakers' calls for more evidence before further tightening.

The dollar weakened broadly against most major currencies. 5% over the past month. 97 an ounce. GOL/ (Reporting by Stella Qiu, Tom Westbrook and Medha Singh.

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