Stocks rose with U.S. equity futures on Wednesday as concerns over valuations eased and the focus turned back to the stimulus-fueled recovery from the
Stocks rose with U.S. equity futures on Wednesday as concerns over valuations eased and the focus turned back to the stimulus-fueled recovery from the pandemic. Treasury yields edged higher.
The Stoxx 600 Index climbed for a third straight session, with U.K. shares outperforming after U.K. Chancellor of the Exchequer Rishi Sunak extended furlough pay for workers ahead of presenting the country’s budget.
U.S. equity futures rebounded from Tuesday’s losses, with contracts on the tech-heavy Nasdaq gauge leading gains. Shares outperformed in Hong Kong and China and climbed in Australia, where data showed the economy maintained its rapid recovery in the final three months of 2020. Oil edged higher after a three-day fall.
The V-shape recovery coming into sharp relief in Australia highlighted expectations for a global rebound that boosts earnings and supports the run up in stocks. At the same time, investors remain wary of a widespread jump in inflationary pressures that could shake confidence by undercutting pledges from central banks to keep monetary policy loose.
“Real yields are still pretty negative and it’s still really easy monetary policy,” said Kathy Jones, chief fixed income strategist at Charles Schwab. “As we normalize and move away from a market dominated by central banks and policy, to one that is more driven by supply and demand, there’s going to be bouts of volatility.”
The swings in fixed income that roiled markets last week have moderated, but the outlook for longer-term borrowing costs and real yields remains a major point of debate.
“If interest rates start moving higher and quicker than expected, then there’s a chance there might be more significant pullback in the market,” Katerina Simonetti, Morgan Stanley Private Wealth Management senior vice president, told Bloomberg TV.
Elsewhere, Bitcoin rose back above $49,000.
There are some key events to watch this week:
– U.S. Federal Reserve Beige Book is due Wednesday.
– OPEC+ meeting on output Thursday.
– U.S. factory orders, initial jobless claims and durable goods orders are due Thursday.
– The February U.S. employment report on Friday will provide an update on the speed and direction of the nation’s labor market recovery.
These are some of the main moves in markets:
Stocks
– Futures on the S&P 500 Index climbed 0.7% as of 8:16 a.m. London time.
– The Stoxx Europe 600 Index increased 0.7%.
– The MSCI Asia Pacific Index gained 1.3%.
– The MSCI Emerging Market Index advanced 1.7%.
Currencies
– The Bloomberg Dollar Spot Index was little changed.
– The euro dipped 0.1% to $1.2084.
– The British pound advanced 0.2% to $1.3978.
– The onshore yuan strengthened 0.2% to 6.46 per dollar.
– The Japanese yen weakened 0.1% to 106.83 per dollar.
Bonds
– The yield on 10-year Treasuries jumped three basis points to 1.42%.
– The yield on two-year Treasuries climbed less than one basis point to 0.12%.
– Germany’s 10-year yield increased one basis point to -0.35%.
– Britain’s 10-year yield advanced one basis point to 0.701%.
– Japan’s 10-year yield declined one basis point to 0.119%.
Commodities
– West Texas Intermediate crude climbed 0.4% to $59.99 a barrel.
– Brent crude increased 0.4% to $62.96 a barrel.
– Gold weakened 0.5% to $1,729.51 an ounce.
Fonte: www.bloomberg.com
