(Bloomberg) — U.S. stock-index futures gained along with shares in Europe as markets stabilized after Monday’s rout, with investors turning their attention to corporate earnings as they reassess the outlook for global growth. Treasuries slipped and the dollar was steady.
The Stoxx Europe 600 index snapped a four-day losing streak in a broad-based rebound led by commodity producers. UBS Group AG jumped more than 4% after reporting earnings that beat analysts’ estimates. Volvo Group declined after missing expectations. S&P 500 and Nasdaq 100 futures advanced. The S&P 500 fell the most in two months on Monday.
The 10-year Treasury yield edged back above 1.2% after spiraling Monday to the lowest since February. Brent crude oil clawed back some losses after tumbling to an eight-week low amid the broader market rout on concerns about the impact of the Covid-19 resurgence on energy demand. Bitcoin fell below the closely watched $30,000 level.
Traders are trying to gauge how long a bout of growth angst and volatility driven by outbreaks of the delta strain will last, after becoming accustomed to retail investors buying dips in stocks. Officials are grappling with rising infections from Sydney and Jakarta to London, with the U.S. telling its citizens to avoid traveling to the U.K. because of the latter’s case spike.
“The market might be a bit worried, though the worries might be overstated,” Marcella Chow, JPMorgan Asset Management global market strategist, said on Bloomberg Television. “We expect the economic recovery story to continue for the second half of the year and this should benefit the value rotation story once again.”
Elsewhere, Asian stocks fell, with cyclicals like energy and industrial stocks among the weakest performers in the Asian retreat. Emerging-market equities slid fora third straight session.
For more market commentary, follow the MLIV blog.
Some key events to watch this week:
Reserve Bank of Australia meeting minutes TuesdayEuropean Central Bank rate decision ThursdayBank Indonesia rate decision ThursdayU.S. existing home sales ThursdayThe Tokyo Summer Olympics begin Friday
Here are some of the main market moves:
Stocks
Futures on the S&P 500 rose 0.6% as of 8:28 a.m. London timeFutures on the Nasdaq 100 gained 0.6%Futures on the Dow Jones Industrial Average advanced 0.8%The Stoxx Europe 600 rose 1%The MSCI World index was little changed
Currencies
The Bloomberg Dollar Spot Index rose 0.1%The euro fell 0.2% to $1.1777The British pound fell 0.2% to $1.3642The Japanese yen fell 0.2% to 109.63 per dollar
Bonds
The yield on 10-year Treasuries advanced two basis points to 1.21%Germany’s 10-year yield declined one basis point to -0.40%Britain’s 10-year yield was little changed at 0.55%
Commodities
West Texas Intermediate crude rose 1% to $67.11 a barrelGold futures rose 0.4% to $1,816.60 an ounce
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