European stocks climb with US futures; pound advances

Bloomberg

European stocks climbed alongside US equity futures on Thursday and Asian shares mostly fell as investors sift the latest company earnings and brace for more data that will show the extent of the fallout from the coronavirus. The pound edged higher after a rate decision.
The Stoxx Europe 600 Index opened in the green as most
national gauges and sectors climbed. Contracts for all three of the main American equity benchmarks also increased after a mixed session on Wednesday, when the S&P 500 finished lower but the Nasdaq advanced.
After the Wall Street close on Wednesday, Lyft Inc. overcame investors’ worst expectations by pushing closer to profitability. Peloton Interactive Inc. said quarterly revenue soared 66%.
European government bonds edged lower as Treasuries drifted. The pound turned higher after the Bank of England kept its policy settings unchanged and signaled it may expand monetary stimulus as soon as next month. Crude oil fluctuated around $24 a barrel in New York.
After risk assets dramatically sold off in March and swiftly rebounded in April, stocks have struggled for direction this month as bulls and bears duel over the outlook. Optimists point to efforts to reopen economies, a slowing rate of new infections and unprecedented stimulus. Pessimists fret over the mounting economic toll, with data in the largest economy later expected to show another huge jump in jobless claims before the payrolls figure.
“We remain concerned about the potential for the pandemic to have lasting effects on growth,” wrote Ron Temple, co-head of multi-asset and head of US equity at Lazard Asset Management. “Countries and companies are likely to exit the crisis with significantly higher debt, curtailing their ability to invest and innovate.”
Most Asian stocks slipped, including in Japan where exchanges opened for the first time this week following a holiday. The yen edged down. China’s yuan advanced offshore after the country reported a surprise gain in exports, even as the coronavirus pandemic damaged global demand.
Elsewhere, the Turkish lira slumped to an unprecedented low against the dollar, defying efforts by state banks to prop up the currency by selling
foreign exchange.
Friday also brings the US jobs report for April, expected to show a severe impact from the pandemic. The median forecast in a Bloomberg survey of economists calls for a 21 million plunge in payrolls.
Futures on the S&P 500 Index increased 1.2% as of 9:18 am London time and the Stoxx Europe 600 Index climbed 0.6%. The MSCI Asia Pacific Index fell 0.4%.
While the Bloomberg Dollar Spot Index decreased 0.1%, the euro was little changed at $1.0794 and the British pound increased 0.1% to $1.2367. The Japanese yen declined 0.2% to 106.38 per dollar.
While the yield on 10-year Treasuries fell less than one basis point to 0.70%, Germany’s 10-year yield climbed one basis point to -0.50%. Britain’s 10-year yield also increased two basis points to 0.246%.
As gold advanced 0.3% to $1,691.51 an ounce, West Texas Intermediate crude decreased 0.5% to $23.86 a barrel.