Shares rallied US futures Thursday as investors waited for key economic data and assessed earnings reports. Treasury yields fell.
European stocks soared as electricity company ABB Ltd. raised its revenue expectations and a rally in base metals lifted miners. Most Asian equities advanced, although figures for Hong Kong and China fell as the Chinese central bank’s liquidity operations indicated it was seeking to contain rising leverage.
US futures pointed to a rebound after indexes fell from all-ever peaks on Wednesday as cryptocurrency exchange fell Coinbase Global Inc. shadowed strong bank profits. The results are expected later on Thursday from Citigroup Inc., BlackRock Inc., among others. and Bank of America Corp.
The ruble slipped as Biden’s government was poised to take it action against Russian individuals and entities in retaliation for alleged misconduct in connection with the SolarWinds hack and the US election.
Expectations of a strong economic recovery, combined with optimism about monetary and fiscal stimulus, have pushed stocks to record levels as corporate reporting continues. Data expected Thursday on US unemployment claims and retail sales will be closely monitored, as will any developments regarding vaccine rollout.
“With the economic upturn and inflationary pressures, cyclical sectors will do particularly well, especially the new cyclical sectors – stocks related to infrastructure, grid modernization, clean energy and storage,” said Eli Lee, head of investment strategy at Bank of Singapore. “But keep in mind that when you get that high return, the volatility is normal for the price.”
Elsewhere, Bitcoin fell from an overnight record. Oil stabilized after Wednesday’s surge on signs that the outlook for demand was improving.
In Asia, traders are also looking out for further vibrations from the sharp sell-off in bonds China Huarong Asset Management Co., a distressed debt firm that has pushed up investment grade spreads.
Some important events to watch this week:
- Data from the US including initial jobless claims, industrial production and retail sales comes Thursday.
- Figures for economic growth, industrial production and retail sales in China are out on Friday.
These are some of the most important movements in the financial markets:
Shares
- Futures on the S&P 500 Index were up 0.5% from 8:35 AM (London time).
- The Stoxx Europe 600 Index rose 0.3%.
- The MSCI Asia Pacific Index gained 0.3%.
- The MSCI Emerging Market Index has changed little.
Currencies
- The Bloomberg Dollar Spot Index fell 0.1%.
- The euro had changed little at $ 1.1985.
- The British pound rose 0.1% to $ 1.3792.
- The land yuan changed little at 6,533 per dollar.
- The Japanese yen is up 0.1% to 108.83 per dollar.
Bonds
- The yield on 10-year Treasury bonds fell by two basis points to 1.62%.
- Two-year government bond yields fell by less than one basis point to 0.16%.
- The German 10-year interest rate fell by one basis point to -0.27%.
- The UK 10-year yield fell by one basis point to 0.793%.
- The 10-year Japanese interest rate fell by less than one basis point to 0.092%.
Raw materials
- West Texas Intermediate crude oil had changed little at $ 63.14 a barrel.
- Brent crude oil had changed little at $ 66.57 a barrel.
- Gold gained 0.6% to $ 1,747.35 an ounce.