Commodity Bounce Buoys Stocks as Dollar Advances

• Commodity Bounce Buoys Stocks as Dollar Advances

Most commodities climbed following a recent selloff, spurring mining stocks and helping European equities to the highest since 2015. The dollar strengthened a second day.

U.S. oil reversed an earlier decline ahead of government data which is expected to show inventories fell for a fifth week, while natural gas futures rebounded from the biggest loss in eight weeks. Copper for delivery in three months also bounced after the lowest close since December. That helped ensure basic resources shares were the biggest winners as the Stoxx Europe 600 Index advanced.

Investors are looking around for the next major market catalyst after the dissipation of concerns over European populism in the wake of Emmanuel Macron’s French election victory. Impending central bank meetings, a potential unwind of the Federal Reserve balance sheet and more scheduled elections have so far failed to dent optimism — volatility is at multi-year lows in both fixed-income and stocks, and shares are trading at record levels as labor-market strength and earnings buoy growth.

“Does the lack of fear reflect an exhausted, tired market that believes zero volatility is normal, or is it an example of enormous complacency?” Bill Blain, a strategist at Mint Partners in London, asked in a note to clients.