European stocks and U.S. futures rebounded from Wednesday’s tumble, though gains were modest as record coronavirus infection rates emerged across some of the world’s biggest economies.
Earnings exceeded estimates for telecoms firm BT Group, oil producer Royal Dutch Shell Plc and drinks giant Anheuser-Busch InBev SA/NV. Shares of all three climbed. Credit Suisse Group AG slipped after profit missed analyst estimates.
S&P 500 contracts recouped less than one-third of the benchmark’s 3.5% slide on Wednesday. The euro slipped for a fourth session before the European Central Bank’s policy decision later Thursday, with new coronavirus curbs from Berlin to Madrid boosting chances of preemptive monetary stimulus. Treasuries and European bonds held steady.
Even with Thursday’s gains, global equities are still headed for the worst decline since June. Investors point to new lockdown measures and a trillion-dollar American stimulus plan failing to jell before the Nov. 3 election. Record one-day virus cases surfaced in Italy, Spain and Germany, where Chancellor Angela Merkel said authorities can no longer track infections back to their sources, opening the door to exponential growth.
“Market sentiment is turning, with investors buffeted by U.S. election uncertainty and now economic worries from rising Covid-19 cases across Europe,” said Kerry Craig, global market strategist at JPMorgan Asset Management. “These short-term forces are well beyond the control of individual investors, underscoring the need to maintain balance through the immediate uncertainty.”
Elsewhere, the pound strengthened versus the euro as European Union and U.K. negotiators made progress toward resolving some of the biggest disagreements, raising hopes that a Brexit deal could be reached by early November. Oil was steady after tumbling more than 5% on concern rising infections will sap demand.
These are some events to watch this week:
European Central Bank briefing from President Christine Lagarde will follow a policy decision on Thursday.Brexit negotiating teams have started intense daily talks, and these are likely to continue as both sides push to finalize a deal by the middle of November.The first reading of U.S. third-quarter GDP Thursday is anticipated to be the strongest on record following a record dive in the prior quarter as many businesses were shuttered by the pandemic.
Here are the main moves in markets:
The Stoxx Europe 600 Index climbed 0.4% as of 10:22 a.m. London time.Futures on the S&P 500 Index jumped 0.7%.Nasdaq 100 Index futures jumped 1%.The MSCI Asia Pacific Index fell 0.3%.
The Bloomberg Dollar Spot Index climbed 0.1%.The British pound rose 0.1% to $1.2995.The Japanese yen strengthened 0.2% to 104.08 per dollar.The onshore yuan strengthened 0.3% to 6.71 per dollar.
The yield on 10-year Treasuries rose one basis point to 0.78%.Germany’s 10-year yield decreased one basis point to -0.63%.Britain’s 10-year yield was unchanged at 0.213%.Japan’s 10-year yield increased one basis point to 0.032%.
West Texas Intermediate crude sank 3.8% to $35.97 a barrel.Gold was little changed at $1,877.71 an ounce.LME aluminum dipped 0.7% to $1,797 per metric ton.Iron ore decreased 0.6% to $111.04 per metric ton.
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