Saturday , December 5 2020

European stocks erase losses, US futures climb

Bloomberg

European stocks erased losses and US equity futures climbed as investors weighed prospects for the economy to recover during the pandemic.
Telecom and health-care shares were among the biggest gainers in Europe. HSBC Holdings Plc slumped after a report that some of Donald Trump’s advisers proposed a move to destabilize Hong Kong’s currency peg to the dollar as a way of punishing China. Treasuries and the dollar steadied. Gold traded near its highest level since 2011.
Stocks in Shanghai powered ahead for a seventh day and iron ore futures climbed.
Investors have been drawn to China’s markets amid efforts by regulators to strengthen
the attractiveness of stocks and hopes for an economic
recovery.
“It’s not unusual for stocks to take a breather at this point,” Susan Schmidt, a portfolio manager at Aviva Investors, said on Bloomberg TV. “We could see ourselves in a bit of a trading range in the next couple of weeks,” before US earnings season ramps up.
Meanwhile, tensions between the US and China have been growing after Beijing asserted broad new powers to rein in opposition in Hong Kong, pouring cold water over hopes the world’s largest economies will patch up relations soured by a lingering trade spat.
China on Wednesday said it will restrict visas for US officials for what it called “egregious” behaviour over Tibet, reciprocating a move announced by Secretary of State Michael Pompeo a day earlier.
Futures on the S&P 500 Index advanced 0.5% as of 9:36 am London time.
While the Stoxx Europe 600 Index increased 0.1%, Germany’s DAX Index gained 0.4%. The MSCI Asia Pacific Index climbed 0.1%.
The Bloomberg Dollar Spot Index declined as much as 0.1% to 1,212.48 and the euro advanced 0.2% to $1.1291.
While the Japanese yen was little changed at 107.49 per dollar, the British pound was little changed at $1.2546.
While the yield on 10-year Treasuries gained one basis point to 0.65%, Germany’s 10-year yield decreased one basis point to -0.44%. Britain’s 10-year yield declined two basis points to 0.163%.
West Texas Intermediate crude climbed 0.1% to $40.68 a barrel and gold strengthened 0.2% to $1,798.56 an ounce.

About Admin

Check Also

Most Middle East stocks rise to track peers, oil higher

Bloomberg Most Middle East stock markets advanced, taking their cue from rising crude oil prices ...

Leave a Reply

Your email address will not be published. Required fields are marked *