(Bloomberg) — Stocks rose with U.S. equity futures Thursday, bolstered by progress on the debt-ceiling impasse in Washington ahead of a key jobs report.
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European equities rebounded as the European Central Bank was said to be studying a new bond-buying program to prevent market turmoil when emergency purchases get phased out. Contracts on U.S. gauges advanced after the S&P 500 swung higher on a possible deal to boost the debt ceiling into December. Asian shares got a boost from Hong Kong-listed technology shares as they bounced from a record low.
Also helping sentiment were Russia’s offer to ease Europe’s energy crunch and U.S. President Joe Biden’s plans to meet virtually with his Chinese counterpart.
Markets have been buffeted in the past month by worries about the energy crisis, elevated inflation, reduced stimulus and slower growth. While concern over U.S. political bickering is easing, Friday’s payrolls report is expected to shed light on the trajectory of the Federal Reserve’s bond purchases.
Oil extended its decline from a seven-year high, with crude stockpiles in the U.S. growing more than expected. The yield on the U.S. 10-year Treasury note was steady, as was the dollar.
“We have several things that we are watching right now — certainly the debt ceiling is one of them and that’s been contributing to the recent volatility,” Tracie McMillion, head of global asset allocation strategy at Wells Fargo Investment Institute, said on Bloomberg Television. “But we look for these 5% corrections to add money to the equity markets.”
On the geopolitical front, U.S. Secretary of State Antony Blinken criticized China’s recent military maneuvers around Taiwan.
Elsewhere, Bitcoin hovered around the $55,000 mark. Chinese markets are shut for a holiday and reopen on Friday.
For more market analysis, read our MLIV blog.
Here are some events to watch this week:
Some of the main moves in markets:
Stocks
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The Stoxx Europe 600 rose 1.1% as of 8:31 a.m. London time
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Futures on the S&P 500 rose 0.6%
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Futures on the Nasdaq 100 rose 0.9%
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Futures on the Dow Jones Industrial Average rose 0.4%
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The MSCI Asia Pacific Index rose 1.2%
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The MSCI Emerging Markets Index rose 1.8%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.1565
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The Japanese yen rose 0.1% to 111.28 per dollar
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The offshore yuan was little changed at 6.4493 per dollar
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The British pound was little changed at $1.3593
Bonds
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The yield on 10-year Treasuries was little changed at 1.52%
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Germany’s 10-year yield was little changed at -0.19%
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Britain’s 10-year yield declined two basis points to 1.05%
Commodities
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Brent crude fell 0.9% to $80.38 a barrel
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Spot gold rose 0.2% to $1,765.86 an ounce
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