(Bloomberg) — Stocks rose on U.S. economic data that supported earnings optimism and calls for interest rate cuts. A number of Federal Reserve speakers are scheduled for Friday as traders await next week's key US inflation data.
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The Stoxx 600 rose 0.6%, poised for its biggest weekly gain in more than three months. S&P 500 contracts rose 0.2% after the index ended less than 1% from its all-time high. U.S. Treasuries and the dollar were flat, but the pound rose slightly on data showing Britain's economy is recovering from a shallow recession.
Better-than-expected U.S. jobless claims on Thursday confirmed support for interest rate cuts and provided new impetus for stock market rebound. Traders are watching for hints from Fed officials including Michelle Bowman and Neel Kashkari about the timing of policy easing ahead of next week's CPI data.
Daniel Yoo, head of global asset allocation at Korea Yuanta Securities, said on Bloomberg TV that earnings growth and a slight decline in U.S. interest rates this year could push stocks to new records. “There is significant upside potential not only for the S&P 500 but also for the big tech stocks.”
In Asia, the Hang Seng rose on news that regulators are considering exempting retail investors from paying taxes on dividends earned from Hong Kong stocks bought through Stock Connect. Mainland Chinese stocks were volatile as investors appreciated reports that U.S. President Joe Biden's administration was prepared to announce sweeping decisions on tariffs on China as soon as next week.
Oil continued to rise into the third day as a key technical level provided a lower bound for the decline. Gold rose after surging more than 1% on Thursday.
This week's main events:
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ECB releases report of April policy meeting on Friday
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University of Michigan Consumer Sentiment, Friday
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Chicago Fed President Austan Goolsby speaks on Friday
The main movements in the market are:
stock
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As of 8:31 a.m. London time, the Stoxx European 600 was up 0.6%.
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S&P 500 futures rose 0.2%
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Nasdaq 100 futures rose 0.2%
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Dow Jones Industrial Average futures rose 0.2%.
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MSCI Asia Pacific Index rose 0.7%
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MSCI Emerging Markets Index rose 0.8%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0781.
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The Japanese yen fell 0.2% to 155.74 yen to the dollar.
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The offshore yuan was almost unchanged at 7.2280 yuan to the dollar.
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Sterling rose 0.1% to $1.2537.
cryptocurrency
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Bitcoin rises 1% to $63,260.01
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Ether rose 0.8% to $3,045.57
bond
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The 10-year government bond yield was almost unchanged at 4.45%.
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Germany's 10-year bond yield fell 2 basis points to 2.47%.
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UK 10-year bond yield falls 2 basis points to 4.12%
merchandise
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Brent crude rose 0.5% to $84.33 per barrel
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Spot gold rose 0.9% to $2,367.70 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from April Marr, Divya Patil and Richard Henderson.
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