(Bloomberg) — Stocks rose with U.S. futures on Friday as investor optimism in the prospects for growth got a boost from strong earnings and economic readings.
The Stoxx Europe 600 Index climbed, with Richemont pushing luxury shares higher after the maker of Cartier jewelry reported sales that topped estimates. Contracts on all three U.S. benchmarks were higher, signaling more stock gains after initial jobless claims dropped to a fresh pandemic low on Thursday. Asian shares were mostly higher, although they slipped in China.
Treasury yields slipped and the dollar edged higher. Gold hovered around the highest level in more than four months. Bitcoin steadied after a volatile cryptocurrency slump this week.
The global economic revival, the risk of a significant pickup in inflation and Covid-19 flareups in some parts of the world continue to shape market moves. Stocks have been volatile this week, with speculative ardor cooling as investors took in minutes from the latest Federal Reserve meeting that flagged the possibility of a debate at some point on scaling back stimulus measures.
“Overall we’re still quite risk-on,” Adrian Zuercher, head of global asset allocation at UBS Chief Investment Office, said on Bloomberg Television, adding the vaccine rollout and reopening of the economy “should lead to higher equity markets” and that the “reflation trade is not over yet.”
Elsewhere, Brent oil headed for the biggest weekly decline since March on prospects of increased Iranian supply as the nation inches closer to a revived nuclear deal. In Hong Kong, Tencent Holdings Ltd. slid after pledging a sharp boost in investment.
Click here for the MLIV question of the day: How should markets price in an aging China?
Here are some key events this week:
Data on existing U.S. home sales for April are due on May 21Euro-area finance ministers and central bank chiefs hold an informal meeting. A larger group of EU finance ministers and central bank chiefs will meet May 22
These are some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.2% as of 8:33 a.m. London timeFutures on the S&P 500 rose 0.3%Futures on the Nasdaq 100 rose 0.3%Futures on the Dow Jones Industrial Average rose 0.2%The MSCI Asia Pacific Index rose 0.3%The MSCI Emerging Markets Index rose 0.2%
Currencies
The Bloomberg Dollar Spot Index rose 0.1%The euro was little changed at $1.2219The Japanese yen was little changed at 108.71 per dollarThe offshore yuan was little changed at 6.4361 per dollarThe British pound was little changed at $1.4179
Bonds
The yield on 10-year Treasuries was little changed at 1.62%Germany’s 10-year yield declined one basis point to -0.12%Britain’s 10-year yield declined one basis point to 0.83%
Commodities
Brent crude was little changedSpot gold fell 0.2% to $1,874 an ounce
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