European Stocks Climb on Earnings; Futures Mixed: Markets Wrap

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(Bloomberg) — European stocks got a boost from upbeat corporate results that helped allay concern about the rising toll of the virus. The dollar extended a rebound.

The Stoxx Europe 600 Index surged 0.7%, with energy and tech firms leading gains in almost every industry sector. S&P 500 contracts erased losses following a retreat in the U.S. benchmark all week. Nasdaq 100 futures were lower.

Mixed messages are creating a conundrum for investors, with corporate results reflecting optimism that growth is set to roar back from pandemic-induced recessions even as the virus spreads at an alarming rate in the developing world. Stocks near record highs are now under pressure from the threat of new lockdowns that could delay global economic rebounds.

© Bloomberg EPS estimates for global corporations extend a record high

On the corporate earnings front, Dutch chip-equipment maker ASML Holding NV jumped 4.5% after it said it expects 2021 revenue growth of about 30% from a year ago, compared to a previous target of “double-digit” growth. Swiss drugmaker Roche Holding AG also rose after prospects for new medicines overshadowed a drop in first-quarter sales.

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The dollar headed for a second day of gains, the longest streak since March. Treasuries paused a rally that sent the 10-year yield to its lowest level in more than five weeks, as the benchmark added two basis points.

Read: Stumble in Stocks Lacks Easy Explanation for Wall Street Pundits

Here are some key events to watch this week:

EIA crude oil inventory report on Wednesday.European Central Bank rate decision and President Christine Lagarde briefing on Thursday.U.S. releases new home sales data Friday.

Stocks

Futures on the S&P 500 Index climbed 0.1% as of 9:03 a.m. London time.The Stoxx Europe 600 Index increased 0.7%.The MSCI Asia Pacific Index decreased 1.4%.The MSCI Emerging Market Index decreased 1%.

Currencies

The Bloomberg Dollar Spot Index rose 0.1%.The euro declined 0.2% to $1.2008.The British pound was little changed at $1.3933.The onshore yuan was little changed at 6.497 per dollar.The Japanese yen weakened 0.1% to 108.22 per dollar.

Bonds

The yield on 10-year Treasuries jumped two basis points to 1.57%.The yield on two-year Treasuries climbed less than one basis point to 0.15%.Germany’s 10-year yield gained one basis point to -0.25%.Japan’s 10-year yield fell one basis point to 0.08%.Britain’s 10-year yield jumped two basis points to 0.748%.

Commodities

West Texas Intermediate crude declined 0.4% to $62.44 a barrel.Brent crude dipped 0.3% to $66.40 a barrel.Gold strengthened 0.2% to $1,782.24 an ounce.

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