Stocks Rally With Bonds in August on Global Stimulus Bets

Global stocks rallied with Treasuries and European yields tumbled in August as investors bet central banks will continue to underpin global economies. Escalating violence in Ukraine sent the ruble plunging to a record low while gold advanced.

The MSCI All-Country World Index jumped 2 percent for the month and the Standard & Poor’s 500 Index surged 3.8 percent, giving both gauges the best performance since February. Ten-year Treasury yields dropped 21 basis points, the most since January, while rates on similar-maturity bonds from Italy to Spain and Germany touched record lows. The MSCI Emerging Markets Index capped its longest streak of monthly gains since 2005. Volatility eased despite global conflicts, as the VIX plunged 29 percent, the biggest drop in more than two years.