Shares rose on Thursday with the future of the US as investors waited for key economic data and assessed earnings reports. Treasury yields declined.
European equities rose as electricity company ABB Ltd. improved its revenue guidelines and a rally in base metals lifted miners. Most Asian stocks have advanced, although measurements for Hong Kong and China have declined as the liquidity operations of the Chinese central bank have indicated that it is trying to contain a growing leverage effect.
US futures indicated a rebound after indices fell from historic highs on Wednesday as cryptocurrency fell Coinbase Global Inc. a umbrit strong bank gains. The results will be released later Thursday from companies, including Citigroup Inc., BlackRock Inc. and Bank of America Corp.
The ruble slipped with the Biden administration ready to take action against Russian individuals and entities in retaliation for alleged violations of the SolarWinds hack and the US elections.
Expectations of a strong economic recovery, combined with optimism about monetary and fiscal incentives, have pushed stocks close to record levels as the company’s reporting continues. The data that will be released on Thursday on US unemployment claims and retail sales will be closely monitored, as will any developments in the launch of the vaccine.
“With economic growth and inflationary pressures, the cyclical sectors will do particularly well, especially the new cyclical ones – infrastructure stocks, grid modernization, clean energy and storage,” said Eli Lee, head of investment strategy at the Bank of Singapore. “But keep in mind that when you get such high returns, volatility is the most important thing for the course.”
Elsewhere, Bitcoin fell from a record overnight. Oil stabilized after rising on Wednesday, demand prospects improved.
In Asia, traders are also wary of further shaking due to strong bond sales China Huarong Asset Management Co., which has pushed higher investment spreads.
Some key events to watch this week:
- US data, including initial unemployment claims, industrial production and retail sales come on Thursday.
- China’s economic growth, industrial production and retail sales figures are on Friday.
These are some of the main movements in the financial markets:
Inventories
- S&P 500 futures rose 0.5% from 8:35 a.m. London time.
- The Stoxx Europe 600 index rose 0.3%.
- The MSCI Asia Pacific Index rose 0.3%.
- The MSCI emerging market index has changed little.
currencies
- The Bloomberg Dollar Spot index fell 0.1%.
- The euro was slightly lower at $ 1,1985.
- The pound rose 0.1% to $ 1.3792.
- The terrestrial yuan changed slightly to $ 6,533.
- The Japanese yen strengthened 0.1% to 108.83 per dollar.
BONDS
- The 10-year Treasury yield fell by two basis points to 1.62%.
- The two-year Treasury yield fell less than one basis point to 0.16%.
- Germany’s 10-year yield fell one basis point to -0.27%.
- The British 10-year yield fell one basis point to 0.793%.
- Japan’s 10-year yield fell by less than one basis point to 0.092%.
commodities
- West Texas Intermediate Land was slightly changed at $ 63.14 a barrel.
- Crude brent was slightly lower at $ 66.57 a barrel.
- Gold strengthened 0.6% to $ 1,747.35 an ounce.