(Bloomberg) — European stocks climbed with U.S. equity futures on Thursday as investors balanced strong corporate earnings against the threat to the economic recovery from the spread of the delta virus variant.
The Stoxx 600 Index drifted higher, with Rolls-Royce Holdings Plc gaining after announcing a surprise first-half profit and Siemens AG up after the German engineering company posted better-than-expected third-quarter results.
In Asia, equities edged up in Japan but slipped in Hong Kong and China, where Beijing’s regulatory curbs continue to dominate the agenda. Contracts on the S&P 500 Index rose 0.2%.
Treasuries were little changed with the dollar, while oil was steady after several days of losses on the risks to demand posed by the delta variant, especially in the key market of China.
With stocks at or near record highs, investors are keeping an eye on the fast-spreading delta strain of the coronavirus, which is prompting new mobility curbs and a rally in sovereign debt. Also on the agenda are prospects of a pullback in stimulus after Vice Chairman Richard Clarida said on Wednesday the Fed is on track for a liftoff in interest rates in 2023.
The U.S. job market remains a key window onto the outlook, with the latest economic data showing a much softer-than-expected ADP employment report but a record expansion for U.S. service industries. American jobs numbers are due Friday.
“Employment getting back to full capacity, is going to be an important marker for the Fed to start to taper,” Erin Browne, multi-asset strategies portfolio manager at Pacific Investment Management Co., said on Bloomberg Television. “You’re going to continue to see growth numbers look quite robust — remember, we both have monetary support which is fading but still out there, as well as fiscal support across developed markets which are supporters for growth.”
Here are some key events to watch this week:
Bank of England is expected to keep its benchmark interest rate and its bond-buying target unchanged ThursdayReserve Bank of India monetary policy decision, briefing FridayThe U.S. jobs report is expected to show another robust month of hiring Friday
For more market analysis read our MLIV blog.
These are the main moves in markets:
The Stoxx Europe 600 rose 0.2% as of 8:25 a.m. London timeFutures on the S&P 500 rose 0.2%Futures on the Nasdaq 100 rose 0.1%Futures on the Dow Jones Industrial Average rose 0.2%The MSCI Asia Pacific Index was little changedThe MSCI Emerging Markets Index fell 0.3%
The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1842The Japanese yen fell 0.2% to 109.69 per dollarThe offshore yuan was little changed at 6.4612 per dollarThe British pound rose 0.2% to $1.3914
The yield on 10-year Treasuries was little changed at 1.18%Germany’s 10-year yield was little changed at -0.50%Britain’s 10-year yield was little changed at 0.51%
Brent crude fell 0.2% to $70.24 a barrelSpot gold was little changed
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