(Bloomberg) — U.S. futures rose with global stocks as traders considered a tame outlook for inflation. German bonds edged higher before the European Central Bank’s policy meeting.
Nasdaq 100 Index futures were set to outperform the broader market, and GameStop shares added 4% on Germany’s Tradegate venue after a volatile day of U.S. trading. Europe’s Stoxx 600 advanced, led by travel shares. Copper climbed above $9,000 a ton in London and the dollar weakened.
Markets were relatively calm on Thursday, buoyed by a weaker-than-expected report on U.S. consumer prices that eased concern about broader inflationary pressures. Ten-year Treasury yields steadied at 1.5%, helping breathe life back into technology stocks that have been pummeled in recent weeks.
Also market sentiment is that the U.S. $1.9 trillion Covid-19 relief bill cleared its final congressional hurdle and will be signed by President Joe Biden on Friday. Most Americans will be receiving direct payments of $1,400, with the money starting to go out within days.
“It is one of the most far-reaching federal relief efforts to ever pass Congress and another reason to be confident of the outlook for U.S. equities,” said Willem Sels, chief investment officer at HSBC Private Banking and Wealth Management. “We think that the bond market has sold off too much.”
Meanwhile, the ECB is expected to make a policy announcement at 1:45 p.m. Frankfurt time, which will be followed by President Christine Lagarde’s press conference. While the central bank isn’t expected to make any major changes to its bond buying program, the focus will be on the language. Investors are looking for any hint that the ECB plans to take action to contain rising bond yields.
ECB Confronts Rising Yields, Delayed Recovery: Decision Guide
Here are some key events to watch:
The U.S. government auctions 30-year Treasuries Thursday.The European Central Bank holds its monetary policy meeting and President Christine Lagarde is set to do a briefing Thursday.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index gained 0.4% as of 8:49 a.m. London time.The Stoxx Europe 600 Index increased 0.3%.The MSCI Asia Pacific Index rose 1.3%.The MSCI Emerging Market Index rose 1.9%.
Currencies
The Bloomberg Dollar Spot Index fell 0.3% to 1,139.01.The euro climbed 0.3% to $1.1968.The British pound gained 0.1% to $1.3952.The Japanese yen was little changed at 108.42 per dollar.
Bonds
The yield on 10-year Treasuries fell three basis points to 1.49%.The yield on two-year Treasuries dipped one basis point to 0.15%.Germany’s 10-year yield declined two basis points to -0.33%.
Commodities
West Texas Intermediate crude rose 0.8% to $65.13 a barrel.Gold strengthened 0.7% to $1,739.57 an ounce.
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