European stocks rose and US equity futures edged higher as investors responded to strong earnings and showed an appetite for riskier assets. The dollar slipped.
(Bloomberg) — European stocks rose and US equity futures edged higher as investors responded to strong earnings and showed an appetite for riskier assets. The dollar slipped.
Europe’s Stoxx 600 Index climbed for a fourth day, with media and mining stocks leading the gains. Standard Chartered Plc rose as the emerging-markets focused lender announced a buyback and forecast higher returns. Contracts for the S&P 500 and Nasdaq 100 edged higher, after the two US benchmarks advanced on Wednesday. An index of Asian equities climbed.
The greenback fell against all G-10 currencies while the yen strengthened. Benchmark 10-year US Treasury yields were moderately lower after increasing six basis points on Wednesday.
Investors have taken comfort from evidence of resilience in the economy combined with signs that inflation is at least receding, even if it remains too high. After US retail sales in January jumped by the most in almost two years and homebuilder sentiment rose in February, jobless claims and PPI figures due later Thursday will provide the latest readings for Federal Reserve policymakers deciding on the path of rate hikes.
The market “is telling us maybe we can keep going as long as inflation is coming down overall and growth is solid,” Quincy Krosby, chief global strategist for LPL Financial, said in an interview with Bloomberg Television.
The rally in risk assets helped propel higher some of the most speculative corners of the market. A Goldman Sachs Group Inc. benchmark of non-profitable tech companies rose 4.4% and is up almost 30% this year. Bitcoin rose further after jumping 8.7% Wednesday, the most in three months, to reach the highest level since August.
“Everybody is trying to figure out whether this is going to be a once-in-a-lifetime soft landing or if it’s just taking longer before we get a panic recession,” Jerry Braakman, chief investment officer of First American Trust, said in an interview. “That’s why you’re seeing a lot of divergence between bulls and bears.”
Oil advanced as investors assessed more evidence of higher energy demand in China and broader markets gained with a risk-on tone.
In Turkey, the main equities benchmark reversed its post-quake losses in a little more than a day, less than the amount of time it took for the big slump to occur, thanks to government measures to support the stock market.
In other corporate news, Adani Group is in talks with potential investors about a bond offering, according to people familiar with the matter.
Key events:
- US jobless claims, Australia unemployment, Cleveland Fed President Loretta Mester speaks at Global Interdependence Center event Thursday
- France CPI, Russia GDP Friday
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 rose 0.5% as of 8:24 a.m. London time
- S&P 500 futures rose 0.1%
- Nasdaq 100 futures rose 0.2%
- Futures on the Dow Jones Industrial Average were little changed
- The MSCI Asia Pacific Index rose 0.9%
- The MSCI Emerging Markets Index rose 0.7%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.3% to $1.0717
- The Japanese yen rose 0.4% to 133.69 per dollar
- The offshore yuan was little changed at 6.8608 per dollar
- The British pound rose 0.3% to $1.2062
Cryptocurrencies
- Bitcoin rose 1.9% to $24,635.16
- Ether rose 1.1% to $1,684.22
Bonds
- The yield on 10-year Treasuries declined two basis points to 3.78%
- Germany’s 10-year yield declined one basis point to 2.46%
- Britain’s 10-year yield declined two basis points to 3.47%
Commodities
- Brent crude rose 0.9% to $86.12 a barrel
- Spot gold rose 0.4% to $1,842.85 an ounce
This story was produced with the assistance of Bloomberg Automation.
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