Over $1.8tr has been added to value of equities worldwide in February.
Stocks rose, with the global benchmark index approaching a six-year high, while Spain led an advance in European bonds. Ukraine government securities extended gains as the president called for early elections.
The MSCI All-Country World Index added 0.3 per cent at 6:30am in New York and is 0.5 per cent from the six-year high reached on December 31.
Standard & Poor's 500 Index futures rose 0.1 per cent. Spain's 10-year bond yield fell six basis points to 3.54 per cent. Canada's dollar slid and the Swedish krona weakened. China's yuan had its biggest weekly slide since 2011 in Hong Kong. Ukraine'sApril 2023 dollar bond climbed the most in two months.
More than $1.8 trillion has been added to the value of equities worldwide this month amid speculation the global economy is strong enough to withstand stimulus cuts. Group of 20 finance chiefs meeting in Sydney this weekend will back the withdrawal of stimulus in advanced economies and commit to developing new measures to boost growth, according to a draft communique seen by Bloomberg.
Ukrainian leader Viktor Yanukovych said he's initiating early presidential elections to end the political crisis as S&P warned the country risks default without "significantly favorable changes."
"The fact that equity markets are back to near recent highs only proves that there is sufficient interest and capital going forward to support them," said William Hobbs, the London-based head of equity strategy at Barclays's wealth-management unit.
"Investors are taking reassurance from that. It's not worth betting against a global economic recovery."
The Stoxx Europe 600 Index advanced 0.2 per cent, up 5.6 per cent from its low on February 4. The benchmark gauge is heading for a 0.6 per cent gain this week, the third consecutive weekly increase.
The number of shares changing hands in Stoxx 600-listed companies was 8.7 per cent lower than the 30-day average, according to data compiled by Bloomberg based on volumes at this time of the day.
Valeo SA jumped 9.8 per cent after the French auto-parts maker posted six-month earnings that beat analyst estimates. Remy Cointreau SA rose 5.7 per cent after Barclays upgraded the stock. Vodafone Group climbed 2.7 per cent as the wireless carrier was set to complete its biggest sale of the past decade, leaving it about half the size it was.
Axa SA slipped 2.4 per cent after Europe's second-largest insurer reported full-year profit that missed analyst predictions. Elekta AB slumped 11 per cent after the maker of radiation-surgery equipment cut its sales and profit forecasts.
S&P 500, which is 0.5 per cent away from its all-time high reached last month, gained 0.1 per cent this week.
Groupon lost 11 per cent in German trading after forecasting first-quarter profit that trailed analysts' estimates on higher expenses for acquisitions and marketing. The yield on Ukraine's 2023 bond fell 69 basis points to 10.41 per cent, the biggest decline since Russia pledged a $15 billion bailout on December 17. The benchmark equity gauge jumped 0.8 per cent, erasing earlier losses.
The country is at risk of default after a political crisis "deteriorated substantially," S&P said, downgrading Ukraine's debt to CCC, eight levels before investment grade, and keeping a negative outlook.
The MSCI Emerging Markets Index added 0.7 per cent, trimming this week's decline to less than 0.1 per cent.
Samsung Electronics Co, which will unveil a high-end Galaxy phone this week, drove a gauge of technology stocks to a record high, rallying 3.4 per cent.
The yuan dropped 0.27 per cent today to 6.0847 per dollar as of 4:40pm in Hong Kong, extending this week's loss to 0.81 per cent, based on data compiled by Bloomberg.
The yield on 10-year Italian debt declined five basis points to 3.60 per cent as Prime-Minister-designate Matteo Renzi prepared to name his cabinet amid speculation he will accelerate economic reforms to boost the economy. Germany's 10-year bund yield dropped two basis points to 1.67 per cent. The dollar rose 0.1 per cent to 102.40 yen, extending this week's gain to 0.6 per cent, the biggest since the period through December 27. The US currency was little changed at $1.3706 per euro. The euro was at 140.42 yen.
Indian stocks advance
Indian stocks advanced, with the benchmark index posting its biggest weekly gain in two months, amid speculation banks will benefit from foreign investment and signs bad debts have peaked.
Axis Bank rallied 3.1 per cent, sending an industry gauge to its largest weekly gain in two months.
Larsen & Toubro jumped two per cent, sending a gauge of capital goods shares to a one-month high. HCL Technologies climbed to a record after Wall Street Journal reported the company's founder plans to sell his stake.
HCL Corp, which owns the software maker, denied the report in an e-mailed statement. The S&P BSE Sensex jumped 0.8 per cent to 20,700.75 at the close, climbing 1.6 per cent this week.
The S&P BSE Bankex has a price-to-book ratio of 1.5, versus its 10-year average of 2.1. It fell 9.9 per cent last month.