Stocks, U.S. Futures Rise as Traders Mull Recovery: Markets Wrap

(Bloomberg) — European stocks rose along with U.S. equity futures Thursday as traders turned risk-on even as they kept a close eye on supply snarls and price pressures weighing on the global recovery.

Most Read from Bloomberg

U.S. futures pushed higher after Wall Street snapped a three-day losing streak, with contracts on the tech-heavy Nasdaq 100 outperforming those on the S&P 500. Treasuries trimmed an overnight rally, but the 10-year yield remained around 1.5%. Crude oil stabilized above $80 a barrel and gold dipped from the highest in nearly a month.

Investors continue to evaluate the resilience of economic reopening to supply chain disruptions, a jump in energy prices and the prospect of reduced central bank support. In the earnings season so far, executives at S&P 500 companies mentioned the phrase “supply chain” about 3,000 times on investor calls as of Tuesday — far higher than last year’s then-record figure.

“Our constructive outlook for growth means that our asset allocation remains broadly pro-risk and we continue to be modestly overweight global equities,” according to Michael Grady, head of investment strategy and chief economist at Aviva Investors. “However, we have scaled back that position marginally because of growing pains which could impact sales and margins.”

Data Wednesday showed prices paid by U.S. consumers rose by more than forecast in September, underscoring inflationary pressures, while the latest Fed minutes signaled a tapering of bond purchases from mid-November or mid-December.

“Markets took the news in their stride immediately following the release, reflecting how the build-up to this move has been gradually telegraphed through the year,” according to Deutsche Bank AG strategists including Jim Reid.

In Europe, the Stoxx Europe 600 index reached its highest level in almost three weeks, boosted by gains in tech shares and miners.

In currency markets, the U.S. dollar weakened against all Group of 10 peers except the yen. The Turkish lira weakened to a record low Thursday after President Recep Tayyip Erdogan fired three central bankers.

Bitcoin resumed its rally, taking the largest digital token above $57,000.

Here are a few events to watch this week:

  • Bank of America Corp., Morgan Stanley and Citigroup Inc. report earnings on Thursday

  • U.S. initial jobless claims, PPI on Thursday

  • Goldman Sachs Group Inc. reports earnings on Friday

  • U.S. business inventories, University of Michigan consumer sentiment, retail sales on Friday

For more market analysis, read our MLIV blog.

Some of the main moves in markets:

Stocks

  • Futures on the S&P 500 rose 0.6% as of 6:25 a.m. New York time

  • Futures on the Nasdaq 100 rose 0.8%

  • Futures on the Dow Jones Industrial Average rose 0.6%

  • The Stoxx Europe 600 rose 0.9%

  • The MSCI World index rose 0.4%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.2%

  • The euro rose 0.1% to $1.1608

  • The British pound rose 0.5% to $1.3725

  • The Japanese yen was little changed at 113.35 per dollar

Bonds

  • The yield on 10-year Treasuries was little changed at 1.53%

  • Germany’s 10-year yield declined three basis points to -0.16%

  • Britain’s 10-year yield declined one basis point to 1.08%

Commodities

  • West Texas Intermediate crude rose 1.1% to $81.30 a barrel

  • Gold futures rose 0.3% to $1,799.80 an ounce

Most Read from Bloomberg Businessweek

©2021 Bloomberg L.P.