LONDON/SYDNEY—Shares gained ground on Monday, recovering their footing after a strong U.S. jobs report last week bolstered the case for more super-sized interest rate hikes, while the dollar weakened and government bond yields fell.
Markets quickly moved to price a chance of about 70 percent that the U.S. Federal Reserve would raise rates by 75 basis points in September, sending two-year yields up 20 basis points on Friday and further inverting the curve.
But the broad Euro STOXX 600 gained as much as 0.8 percent in early trade, led by cyclical and growth stocks, helping recover losses from Friday sparked by the U.S. jobs report. Miners and technology, hit hard in the previous week, led to early gains. The MSCI world equity index, which tracks shares in 47 countries, added 0.2 percent, recovering losses of the same amount seen on Friday….