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Europe Stocks, U.S. Futures Rebound; Bonds Steady: Markets Wrap

(Bloomberg) —

European stocks and U.S. futures rebounded from Wednesday’s tumble, though gains were modest as record coronavirus infection rates emerged across some of the world’s biggest economies.

Real estate and technology shares led a broad advance at the European open. Profit exceeded estimates at chip-equipment maker ASM International NV, as well as for oil producer Royal Dutch Shell Plc and drinks giant Anheuser-Busch InBev SA/NV. Credit Suisse Group AG slipped after profit missed analyst estimates.

S&P 500 contracts rose after the benchmark lost 3.5% Wednesday — its biggest drop since June. The euro slipped before the European Central Bank’s policy decision later Thursday, with the new coronavirus curbs from Berlin to Madrid boosting the chance of preemptive monetary stimulus. Treasuries and European bonds held steady.

An MSCI gauge of global equities was still down by the most this week since June as leaders plan new lockdown measures and as American lawmakers failed to agree on an economic aid package before the Nov. 3 election. Germany, Italy and Spain all reported record case numbers.

“Market sentiment is turning, with investors buffeted by U.S. election uncertainty and now economic worries from rising Covid-19 cases across Europe,” said Kerry Craig, global market strategist at JPMorgan Asset Management. “These short-term forces are well beyond the control of individual investors, underscoring the need to maintain balance through the immediate uncertainty.”

Elsewhere, the pound strengthened versus the euro as European Union and U.K. negotiators made progress toward resolving some of the biggest disagreements, raising hopes that a Brexit deal could be reached by early November. Oil was steady after tumbling more than 5% on concern rising infections will sap demand.

These are some events to watch this week:

European Central Bank briefing from President Christine Lagarde will follow a policy decision on Thursday.Brexit negotiating teams have started intense daily talks, and these are likely to continue as both sides push to finalize a deal by the middle of November.The first reading of U.S. third-quarter GDP Thursday is anticipated to be the strongest on record following a record dive in the prior quarter as many businesses were shuttered by the pandemic.

Here are the main moves in markets:


The Stoxx Europe 600 Index rose 0.3% as of 8:48 a.m. London time.Futures on the S&P 500 Index jumped 0.9%.Nasdaq 100 Index futures surged 1.1%.The MSCI Asia Pacific Index decreased 0.3%.


The Bloomberg Dollar Spot Index was little changed.The British pound was little changed at $1.2989.The Japanese yen strengthened 0.1% to 104.23 per dollar.The onshore yuan strengthened 0.3% to 6.709 per dollar.


The yield on 10-year Treasuries rose one basis point to 0.78%.Germany’s 10-year yield rose one basis point to -0.62%.Britain’s 10-year yield gained one basis point to 0.223%.Japan’s 10-year yield climbed one basis point to 0.032%.


West Texas Intermediate crude declined 1.4% to $36.85 a barrel.Gold strengthened 0.1% to $1,878.42 an ounce.LME aluminum decreased 0.3% to $1,804.50 per metric ton.Iron ore dipped 0.8% to $110.86 per metric ton.

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