Stocks Rise With US Futures as Earnings Roll In: Markets Wrap

Stocks in Europe rose after reversing losses, while US equity futures rose as traders saw positive signs in corporate earnings reports.

(Bloomberg) — Stocks in Europe rose after reversing losses, while US equity futures rose as traders saw positive signs in corporate earnings reports.

The Stoxx 600 Index turned higher, paced by gains in drugmakers and banks following upbeat results from Sanofi, AstraZeneca Plc and Barclays Plc. Deutsche Bank AG dropped after trading revenue disappointed.

Contracts for the S&P 500 advanced after a two-day decline, while those for the tech-heavy Nasdaq 100 extended Wednesday’s rally. Earnings from Meta Platforms Inc. beat analyst estimates, pushing its shares 11% higher in after-hours trading.

Treasuries and the dollar were little changed before US GDP and jobless claims to gauge the strength of the US economy. The Federal Reserve’s preferred inflation gauge, the core PCE deflator, is due Friday. 

The potential for a tightening of credit conditions linked to the banking turmoil may prompt the Fed to adjust the pace of its interest-rate increases, Evercore ISI’s head of central bank strategy Krishna Guha wrote in a note, citing issues at First Republic Bank. The US regional lender faces potential curbs on borrowing from the Fed. 

“We cannot rule out the possibility developments around First Republic could unfold in a manner that would lead the FOMC to skip May, while signaling a hike in June,” Guha said.

In earnings, Sanofi’s profit topped stimates as the French drugmaker’s blockbuster therapy Dupixent gained market share. AstraZeneca’s profit also rose in the first quarter, helped by sales of its blockbuster oncology treatments.

Pharmaceuticals are well-positioned to weather recession, according to Janet Mui, the head of market analysis at RBC Brewin Dolphin, who recommends shifting to defensives.

“There has been some weakening in credit data which suggests it’s getting more difficult to get a loan,” Mui told Bloomberg TV. “This raises a chance of recession by the end of the year.”

In Asia, Samsung Electronics Co. shares overcame an early drop after posting a record quarterly loss in its chip division but indicating a recovery later this year. Nomura Holdings Inc. shares fell after reporting a slump in profits. Shares in Japan and China trader higher, while those in Australia fell.

Meanwhile, oil inched higher after a Wednesday fall, gold traded near the highest level in a week and Bitcoin resumed an advance.

Here are some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 rose 0.2% as of 9:40 a.m. London time
  • S&P 500 futures rose 0.5%
  • Nasdaq 100 futures rose 0.7%
  • Futures on the Dow Jones Industrial Average rose 0.3%
  • The MSCI Asia Pacific Index rose 0.2%
  • The MSCI Emerging Markets Index rose 0.3%

Currencies

  • The Bloomberg Dollar Spot Index was little changed
  • The euro rose 0.1% to $1.1057
  • The Japanese yen was little changed at 133.78 per dollar
  • The offshore yuan rose 0.2% to 6.9307 per dollar
  • The British pound was little changed at $1.2476

Cryptocurrencies

  • Bitcoin rose 2.3% to $29,062.5
  • Ether rose 1.3% to $1,891.03

Bonds

  • The yield on 10-year Treasuries advanced two basis points to 3.46%
  • Germany’s 10-year yield advanced three basis points to 2.43%
  • Britain’s 10-year yield advanced two basis points to 3.74%

Commodities

  • Brent crude rose 0.6% to $78.16 a barrel
  • Spot gold rose 0.5% to $1,999.31 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Anchalee Worrachate.

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