(Bloomberg) — Stocks rose along with U.S. equity futures Thursday, bolstered by progress on the debt-ceiling impasse in Washington and a rebound in Chinese technology shares. Treasuries dipped as traders await key jobs data.
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MSCI Inc.’s index of Asia-Pacific stocks was on track for its biggest gain since Aug. 31. Hong Kong jumped as a technology gauge bounced from a record low. U.S. and European futures rose after the S&P 500 and Nasdaq 100 swung higher on a possible deal to boost the debt ceiling into December.
Russia’s offer to ease Europe’s energy crunch and President Joe Biden plans to meet virtually with Chinese President Xi Jinping also aided sentiment, as did the European Central Bank’s study of a new bond-buying program to prevent any market turmoil when emergency purchases get phased out.
The yield on the U.S. 10-year Treasury note edged up and the dollar was steady. Investors are continuing to weigh the economic recovery against inflation risks from a jump in energy costs. A robust U.S. nonfarm payrolls report Friday could cement predictions of a reduction in Federal Reserve stimulus starting next month.
The climb in stocks brings some relief as investors grapple with a panoply of risks, including monetary-policy tightening to tackle price pressures and the impact on Chinese growth of Beijing’s curbs on a debt-laden property sector.
“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. Pressed on the financial woes of property developer China Evergrande Group, Blinken said the U.S. is looking to China “to act responsibly and to deal effectively with any challenges.”
Crude oil retreated from a seven-year high partly in the wake of growing U.S. inventories. In cryptocurrencies, Bitcoin fluctuated between $54,000 and $55,000. 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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S&P 500 futures rose 0.5% as of 1:42 p.m. in Tokyo. The S&P 500 rose 0.4%
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Nasdaq 100 futures increased 0.7%. The Nasdaq 100 rose 0.6%
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Japan’s Topix index was steady
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Australia’s S&P/ASX 200 Index added 0.7%
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South Korea’s Kospi index rose 1.6%
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Hong Kong’s Hang Seng Index rose 2.4%
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Euro Stoxx 50 futures added 1.2%
Currencies
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The Japanese yen was little changed at 111.42 per dollar
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The offshore yuan was at 6.4524 per dollar
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The Bloomberg Dollar Spot Index was little changed
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The euro traded at $1.1556
Bonds
Commodities
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West Texas Intermediate crude fell 0.9% to $76.76 a barrel
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Gold was at $1,759.30 an ounce, down 0.2%
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