Stocks Rise With US Futures as Earnings in Focus: Markets Wrap

(Bloomberg) — Stocks advanced with US futures as investors digested a slew of earnings reports and awaited data on US jobless claims.

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Contracts on U.S. gauges signaled a rebound from Wednesday’s equity losses. Walt Disney Co. surged in premarket trading following better-than-expected results and a restructuring plan that includes job cuts and cost savings. Robinhood Markets Inc. rose on an earnings beat, while toymaker Mattel Inc. fell after its outlook disappointed.

European equities gained a third day as heavyweights Siemens AG and AstraZeneca Plc posted results that beat estimates. Credit Suisse Group AG slid after warning it expects a substantial loss this year. A gauge of Asian shares rose, buoyed by gains in Chinese and Hong Kong stocks.

Treasury 10-year notes held the gains from a rally on Wednesday in the wake of a strong auction. An index of the dollar weakened.

Investors will closely watch US data, including Thursday’s report on initial jobless claims, for clues on policy after a string of Federal Reserve officials reiterated that interest rates will need to keep rising to curb inflation, taking the edge off market optimism. Meanwhile, earnings are also in focus, with bumper share buybacks a highlight of the season.

“Investors are shaking off another case of the jitters over how far interest rates will go in the United States, as a raft of better than expected corporate results came in after the bell,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

After this week’s hawkish chorus, Fed-funds futures markets are pricing in higher rates, with some options traders betting the US policy benchmark will reach 6%.

“I don’t think the Fed will cut within this year,” Jun Bei Liu, portfolio manager at Tribeca Investment Partners, said on Bloomberg Television. “The Fed was behind the curve in terms of putting up their interest rate and they certainly are going to be very slow in cutting the interest rate.”

In Asia, shares in Adani Enterprises Ltd. fell, snapping a two-day rally after MSCI Inc. said it was reviewing the amount of Adani Group-linked shares that were freely tradable in public markets.

Elsewhere, oil steadied after rallying about 7% over the previous three sessions. The Australian and New Zealand dollars advanced.

Key events:

US initial jobless claims, Thursday
ECB President Christine Lagarde participates in EU leaders summit, Thursday
Bank of England Governor Andrew Bailey appears before Treasury Committee, Thursday
US University of Michigan consumer sentiment, Friday
Fed’s Christopher Waller and Patrick Harker speak, Friday

Some of the main moves in markets:

Stocks

The Stoxx Europe 600 rose 0.8% as of 9:39 a.m. London time
S&P 500 futures rose 0.7%
Nasdaq 100 futures rose 1%
Futures on the Dow Jones Industrial Average rose 0.6%
The MSCI Asia Pacific Index rose 0.5%
The MSCI Emerging Markets Index rose 0.5%

Currencies

The Bloomberg Dollar Spot Index fell 0.3%
The euro rose 0.4% to $1.0759
The Japanese yen rose 0.4% to 130.94 per dollar
The offshore yuan rose 0.2% to 6.7833 per dollar
The British pound rose 0.5% to $1.2132

Cryptocurrencies

Bitcoin fell 1.1% to $22,697.5
Ether fell 1.2% to $1,632.6

Bonds

The yield on 10-year Treasuries declined one basis point to 3.60%
Germany’s 10-year yield declined six basis points to 2.30%
Britain’s 10-year yield declined six basis points to 3.26%

Commodities

Brent crude fell 0.3% to $84.87 a barrel
Spot gold rose 0.3% to $1,881.80 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Tassia Sipahutar, Richard Henderson and Michael Msika.