Stocks, Futures Up After U.S. Rally; Yields Dip: Markets Wrap

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(Bloomberg) — U.S. index futures and European stocks rose as signs of faster job creation in the world’s largest economy added to optimism about global recovery.

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Contracts on the S&P 500 gauge advanced as March figures showed U.S. private employers added the most jobs in six months and as Friday’s nonfarm payrolls data are expected to reveal similar gains. The Stoxx Europe 600 Index headed for the longest streak of weekly gains this year before the Easter holiday weekend. U.K. retailer Next Plc rose after raising its full-year profit forecast just days before shops reopen after the country’s third lockdown.

Oil rose above $60 per barrel before a meeting of OPEC and allies on extending production cuts. Longer-dated Treasury yields fell as investors weighed delivery challenges to President Joe Biden’s $2.25 trillion stimulus plan outlined on Wednesday. The dollar began April on a strong note after posting the biggest quarterly rally in a year.

Biden’s ambitious plan to rebuild U.S. infrastructure added to the growth outlook, even though Republican opposition to the plan raised questions about how much can actually be delivered.

“There is still some room for recovery in stocks that will benefit from the economic recovery and the reopening trade,” Ania Aldrich, investment principal at Cambiar Investors LLC, said on Bloomberg TV. “There’s still a lot of growth that has to come and that’s not necessarily reflected in earnings yet.”

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A gauge of Asia-Pacific shares rose for the first time in three days, with Hong Kong leading gains, after data signaled a pick-up in regional manufacturing. The emerging-market equity benchmark rebounded from Wednesday’s losses.

The U.S. administration’s $2.25 trillion infrastructure plan outlined Wednesday appeared to boost sentiment less than some expected. The goal of funding it with higher corporate taxes and the prospect of resistance to the overall initiative in Congress tempered the response. In east Asia, data showed the world’s manufacturing heartland is booming as the recovery from the pandemic spurs global trade.

Read More: Navigating the Recovery Trade Is Getting a Whole Lot Trickier

Investors remain focused on inflation risk as central banks reassert their commitment to low interest rates. Traders for now are looking past worsening virus trends, such as lockdowns in France and Canada’s Ontario province.

Some key events to watch this week:

OPEC+ meets to discuss production levels for May on Thursday.U.S. employment report for March on Friday.Good Friday starts the Easter weekend in countries including the U.S., U.K., France, Germany, Australia and Canada.

These are some of the main moves in financial markets:

Stocks

Futures on the S&P 500 Index climbed 0.3% as of 8:53 a.m. London time.The Stoxx Europe 600 Index increased 0.5%.The MSCI Asia Pacific Index gained 0.8%.The MSCI Emerging Market Index advanced 1.4%.

Currencies

The Bloomberg Dollar Spot Index gained 0.1%.The euro was little changed at $1.1731.The British pound fell 0.1% to $1.3772.The onshore yuan weakened 0.3% to 6.571 per dollar.The Japanese yen was little changed at 110.71 per dollar.

Bonds

The yield on 10-year Treasuries fell three basis points to 1.71%.The yield on two-year Treasuries increased less than one basis point to 0.16%.Germany’s 10-year yield was unchanged at -0.29%.Britain’s 10-year yield gained less than one basis point to 0.848%.Japan’s 10-year yield advanced two basis points to 0.11%.

Commodities

West Texas Intermediate crude gained 2.1% to $60.37 a barrel.Brent crude increased 0.7% to $63.98 a barrel.Gold strengthened 0.7% to $1,719.13 an ounce.

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