Global stocks, futures rise as earnings week kicks off

Bloomberg

Global stocks rose with US equity futures ahead of earnings from big American banks that will act as a barometer of economic health as the pandemic continues to rage. The dollar was steady.
The Stoxx Europe 600 Index climbed as traders awaited outlooks from a slew of companies that have yet to provide concrete guidance on the impact of the virus. European government bond yields rose, led by those of peripheral nations. Chinese stocks renewed their advance after last week’s surge and ahead of growth data due on Thursday. Contracts on the main American equity gauges all advanced.
Oil slipped ahead of an Opec+ meeting this week at which the group may announce plans to start tapering historic production cuts.
With global stocks trading near their highest since February, focus now turns to whether the profit outlook will back up bullishness fuelled by central bank and fiscal policy support. Traders have largely shrugged off new coronavirus outbreaks in some parts of the world, with Florida on Sunday posting the biggest one-day rise in cases since the pandemic began in the US, reporting 15,300 new infections.
“We think earnings are likely to recover in the second half of the year and excess liquidity will continue to support risk assets,” said Julie Fox at UBS Private Wealth Management. “We see further potential in global equities and think there’s some upside in segments of the market that have underperformed during the crisis.”
Futures on the S&P 500 Index climbed 0.3% as of 9:33 am London time and the Stoxx Europe 600 Index increased 0.4%.
While the MSCI Asia Pacific Index rose 1.1%, the MSCI Emerging Market Index gained 0.6%.
The Bloomberg Dollar Spot Index was little changed and the euro gained 0.1% to $1.1308.
While the British pound decreased 0.1% to $1.2609, the onshore yuan weakened 0.1% to 7.003 per dollar. The Japanese yen weakened 0.1% to 107.08 per dollar.
The yield on 10-year Treasuries fell one basis point to 0.63% and the yield on two-year Treasuries decreased less than one basis point to 0.15%.
While Germany’s 10-year yield increased one basis point to -0.46%, Japan’s 10-year yield increased one basis point to 0.04%. Britain’s 10-year yield rose one basis point to 0.162%.
As West Texas Intermediate crude fell 1.5% to $39.95 a barrel, Brent crude dipped 1.2% to $42.70 a barrel. Gold strengthened 0.5% to $1,806.94 an ounce.