(Bloomberg) — U.S. stock-index futures gained along with shares in Europe as markets stabilized after Monday’s rout, with investors turning their attention back 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, with traders looking for buying opportunities after the worst slump since October. UBS Group AG jumped more than 4% after reporting earnings that beat analysts’ estimates, while Volvo Group declined after missing expectations. S&P 500 and Nasdaq 100 futures advanced.
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 slump 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. Bond investors are wagering that the Federal Reserve will continue supporting the economic revival with ultra-low rates well into next year as officials grapple with rising infections from Sydney and Jakarta to London.
“Given that there is little doubt that central banks will do all they can the prevent a significant tightening of financial conditions, meaning there is still a lot of liquidity ready to buy the dip, we think that market valuations are starting to be appealing from a medium-term perspective,” Xavier Chapard, a strategist at Credit Agricole CIB, wrote in a client note. Still, “we are not sure that markets have already fully integrated the risks caused by the new epidemic developments,” he added.
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 9:42 a.m. London timeFutures on the Nasdaq 100 climbed 0.5%Futures on the Dow Jones Industrial Average gained 0.8%The Stoxx Europe 600 advanced 0.9%The MSCI World index was little changed
Currencies
The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1793The British pound was little changed at $1.3665The Japanese yen fell 0.2% to 109.67 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 0.56%
Commodities
West Texas Intermediate crude rose 0.5% to $66.78 a barrelGold futures rose 0.3% to $1,813.80 an ounce
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.
