Monday , May 17 2021

Stocks surge, US futures steady before earnings

Bloomberg

Stocks rise and US futures were steady as traders turned their attention to earnings reports from companies including
JPMorgan Chase & Co. and Goldman Sachs Group Inc.
European equities edged higher on mixed results, with LVMH climbing on better-than-forecast revenue, while Barclays Plc and Tesco Plc slipped. Most Asian stocks climbed, although shares dipped in Japan amid concerns about the slow vaccine rollout.
Treasuries held most of Tuesday’s advance after a successful sale of 30-year bonds. The US dollar added to the prior session’s losses, while oil traded above $60 a barrel.
With global stocks hovering near all-time highs, investors are looking to the earnings season for further catalysts. Expectations of a strong profit rebound have helped markets rally, setting the bar high as reporting kicks off. More broadly, investors are monitoring vaccine developments for any threats to the economic recovery, while also keeping an eye on the rising inflation.
“A lot of growth and inflation have already been priced into the market,” said Emily Roland, co-chief investment strategist at John Hancock Investment Management. “It’s almost as if you need to exceed those expectations in order to see a more pronounced reaction from markets.”
The White House said the US inoculation campaign remains on track despite a pause in Johnson & Johnson doses amid health concerns.
Elsewhere, Asia’s credit markets steadied after pressure from a sharp selloff in one of China’s largest bad-debt managers. Bitcoin jumped to an all-time high, as did Ether, the second-largest digital token. The Nasdaq set a reference price of $250 for the direct listing of Coinbase Global Inc., the cryptocurrency exchange that starts trading on Wednesday.
Meanwhile, banks and financial companies begin reporting first-quarter earnings, including JPMorgan Chase & Co, Citigroup Inc., Bank of America Corp, Morgan Stanley, Goldman Sachs Group Inc.
Futures on the S&P 500 Index increased 0.1% as of 8:34 am London time and he Stoxx Europe 600 Index climbed as much as 0.1%.
While the MSCI Asia Pacific Index increased by 0.7%, the MSCI Emerging Market Index increased 0.9%.
The Bloomberg Dollar Spot Index dipped 0.1% and the euro gained 0.1% to $1.1965.
While the British pound gained 0.4% to $1.3799, the onshore yuan strengthened 0.1% to 6.536 per dollar. The Japanese yen strengthened 0.1% to 108.97 per dollar.
The yield on 10-year Treasuries jumped two basis points to 1.63% and the yield on two-year Treasuries increased less than one basis point to 0.16%.
While Germany’s 10-year yield decreased less than one basis point to -0.30%, Britain’s 10-year yield declined one basis point to 0.774% and Japan’s 10-year yield decreased two basis points to 0.091%.
West Texas Intermediate crude increased 1.3% to $60.96 a barrel and Brent crude increased 1.2% to $64.43 a barrel. Gold was little changed at $1,745.12 an ounce.

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