Bloomberg: Stocks rose with U.S. futures Thursday as traders weighed the outlook for recovery and policy support ahead of a slew of economic reports. The pound fell.
U.S. contracts signaled the S&P 500 Index may regain some momentum after a lull. Eli Lilly & Co. jumped in premarket trading after speeding up its plan to file an application for its Alzheimer’s disease therapy and Accenture Plc rose after boosting its earnings forecast.
European equities rebounded, while a gauge of Asia Pacific equities was slightly higher.
Sterling fell against the dollar after the Bank of England kept its bond-buying plan unchanged, even as it forecast higher inflation for a temporary period. The exporter-heavy FTSE 100 Index climbed.
Yields on 10-year Treasuries were steady, while the dollar weakened.
Equities have come off the record levels seen earlier this month after a hawkish Federal Reserve meeting injected caution into markets. While markets steadied this week after reassuring remarks from Chair Jerome Powell, investors are paying close attention to economic data and commentary from Fed officials.
Due later Thursday are reports on U.S. durable goods orders, initial jobless claims and wholesale inventories.
“The thing to keep in mind is, yes, the rhetoric is saying we might be hiking as soon as 2022, but it’s already priced into market expectations,” Nancy Davis, Quadratic Capital Management founder and chief investment officer, said on Bloomberg TV. “The Fed is saying nothing new, they’re just saying what the market already knew.”
Elsewhere, First Solar Inc. climbed as the U.S. was said to be on the verge of barring some solar products made in China’s Xinjiang region. Bitcoin steadied near $33,000.
Here are some events to watch this week:
The Fed releases Thursday the results of stress tests on the largest U.S. banks
U.S. wholesale inventories, initial jobless claims, GDP, durable goods due Thursday
U.S. personal income/spending, University of Michigan sentiment on Friday
These are some of the main moves in financial markets:
Futures on the S&P 500 rose 0.5% as of 7:15 a.m. New York time
Futures on the Nasdaq 100 rose 0.6%
Futures on the Dow Jones Industrial Average rose 0.5%
The Stoxx Europe 600 rose 0.7%
The MSCI World index rose 0.1%
The Bloomberg Dollar Spot Index fell 0.2%
The euro rose 0.2% to $1.1946
The British pound fell 0.3% to $1.3925
The Japanese yen rose 0.1% to 110.81 per dollar
The yield on 10-year Treasuries was little changed at 1.49%
Germany’s 10-year yield was little changed at -0.17%
Britain’s 10-year yield declined two basis points to 0.76%
West Texas Intermediate crude fell 0.1% to $72.98 a barrel
Gold futures were little changed
–With assistance from Eric Lam, Emily Barrett, Yvonne Yue Li and Yakob Peterseil.