Global stocks rise ahead of bank earnings as Treasury yields edge higher

Global equities advanced on October 9 as investors awaited U.S. inflation figures and quarterly results from major banks. All three leading U.S. stock indexes finished higher and posted weekly gains, despite modest increases in Treasury yields and crude oil prices.

The S&P 500 and Nasdaq Composite each rose about 0.6%. European equities climbed 1%, erasing their decline for the week. MSCI's broad Asia-Pacific index excluding Japan gained 0.6%, while the Nikkei ended nearly unchanged. Goldman Sachs, JP Morgan and Wells Fargo are among the banks due to report third-quarter results.

Doug Beath, global equity strategist at Wells Fargo Investment Institute, said the S&P 500's limited breadth suggested investors considered large technology companies better able to weather higher energy prices and yields, while remaining wary of other sectors. U.S. and European telecom shares were among the weakest performers after SpaceX's low-band spectrum acquisition raised concerns about satellite-based mobile competition.

U.S. Treasury prices declined, with the 10-year yield increasing 2.8 basis points to 5.261%. The yield nevertheless fell 3.5 basis points over the week, its biggest weekly decrease in two months. Investors were awaiting inflation reports ahead of the Federal Reserve's October 27-28 policy meeting.

European government borrowing costs generally eased. The yield premium on French 10-year bonds over German Bunds stood at about 138 basis points, narrowing slightly over the week amid scrutiny of France's debt, budget deficit and political outlook.

Front-month West Texas Intermediate and Brent crude contracts each gained 0.4%, with Brent settling near $104 per barrel. Gold increased about 1.5% to $4,193 per ounce. The euro recorded its fifth consecutive weekly decline.