US stocks rebounded while the dollar and Treasuries slipped, as major assets continued to churn in tight ranges amid corporate results and a string of potential geopolitical catalysts.
The S&P 500 Index halted a two-day slide on earnings from American Express Co. and Qualcomm Inc. The greenback slipped against most of its major peers after its best day since March. The Stoxx Europe 600 Index found support from better-than-expected results of food producers Unilever NV and Nestle SA. Oil stabilized on signs of output cuts could be extended, but was a long way from erasing Wednesday’s slump.
Investors are facing a test of their mettle as a series of elections in Europe and tensions around North Korea and Syria ratchet up market risks. US President Donald Trump’s travails trying to implement his fiscal agenda are also clouding the growth picture, while the Federal Reserve’s plan for monetary tightening looks increasingly unsure.
“This political uncertainty’s not going away for a while,” said Ben Kumar, a London-based investment manager at Seven Investment Management, which oversees about 10 billion pounds ($13 billion). “Markets are trying to get their heads around whether that will actually affect company earnings.”
US Vice President Mike Pence continues his Asia-Pacific trip with a stop in Jakarta. The first round of voting in the French election is on Sunday and the two leading candidates will run off in a winner-takes-all contest on May 7. The yield on 10-year Treasuries rose two basis points to 2.23 after a five basis point advance Wednesday. German government bond yields with a similar maturity added three basis points to 0.24 percent.