(Bloomberg) — U.S. futures were steady and stocks rose on positive earnings reports and optimism that the Federal Reserve won’t start tapering stimulus imminently. Treasuries fell.
Contracts on the S&P 500 and the Nasdaq 100 were steady. Ford Motor Co. rose in premarket trade after a surprise profit as Facebook Inc. fell on a cautious outlook. European shares hit a fresh record, boosted by updates from Royal Dutch Shell Plc and Airbus SE. Beijing’s efforts to soothe market nerves, including a short-term cash injection from the central bank, buoyed Asian equities and Chinese large caps listed in the U.S.
While Fed officials are moving closer to when they can start reducing the massive bond purchases that have helped keep markets buoyant, Chair Jerome Powell’s reassurance that there’s still some way to go is boosting sentiment, along with an earnings season that’s signaling a strong corporate recovery. Still, investors will watch for data on U.S. economic expansion due later today, particularly in light of the threat to global growth from the delta virus variant.
Oil extended gains from a two-week high as U.S. stockpiles declined, while Treasuries retreated.
“The Fed continued its risk management to anchor back inflation expectations without having to do much,” Sebastien Galy, senior macro strategist at Nordea Investment Funds, wrote in emailed comments. “Eventually, the Fed will have to accelerate to clean-up liquidity particularly as parts of the credit and real estate market continue to boom. When it does likely in the middle of next year, it should shake some markets, but we are not there yet.”
Meanwhile, the U.S. Senate voted to move ahead with a broad infrastructure package, after a bipartisan group of senators and the White House reached an agreement on a $550 billion plan.
In other premarket moves, PayPal Holdings Inc. slumped after its quarterly revenue missed estimates. Uber Technologies Inc. fell after SoftBank Group Corp. was said to be selling $2.1 billion of its stake in the ride-hailing gaint in a block trade through Goldman Sachs Group Inc.
In Asia, a Hang Seng tech index surged on a report that China will continue to allow local firms to go public in the U.S.
Bitcoin traded around $40,000, holding this week’s recovery.
For more market analysis read our MLIV blog.
Here are some key events to watch this week:
U.S. GDP data are due Thursday
Here are the main moves in the markets:
Stocks
The Stoxx Europe 600 rose 0.3% as of 10:30 a.m. London timeFutures on the S&P 500 rose 0.1%Futures on the Nasdaq 100 fell 0.1%Futures on the Dow Jones Industrial Average rose 0.3%The MSCI Asia Pacific Index rose 1.7%The MSCI Emerging Markets Index rose 2.1%
Currencies
The Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.3% to $1.1875The Japanese yen was little changed at 109.81 per dollarThe offshore yuan rose 0.4% to 6.4609 per dollarThe British pound rose 0.4% to $1.3955
Bonds
The yield on 10-year Treasuries advanced three basis points to 1.26%Germany’s 10-year yield was little changed at -0.44%Britain’s 10-year yield advanced one basis point to 0.59%
Commodities
Brent crude rose 0.5% to $75.10 a barrelSpot gold rose 0.8% to $1,821.01 an ounce
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