European stocks, futures rebound after tech drop

Bloomberg

European stocks and US futures rebounded from the sell-off in technology shares as focus turned to positive earnings
and signs of economic
recovery from the pandemic.
The Stoxx 600 Index jumped more than 1%, with miners and travel shares among the benchmark’s biggest gainers. Tech stocks bounced back from Tuesday’s rout sparked by fears of quickening inflation.
Shares of Hugo Boss AG climbed after first quarter sales beat analyst estimates, while Novo Nordisk A/S gained after the drugmaker raised its profit and sales forecasts for the year. US equity futures drifted higher, while Asian stocks were mixed.
Growing faith in an economic rebound sent commodities prices to their highest levels in almost a decade. Copper traded around $10,000 a ton and oil topped $66 a barrel. The dollar strengthened, while Treasuries were steady.
Treasury Secretary Janet Yellen rattled markets with comments that interest rates may have to rise moderately to keep the economy from overheating, though she later softened the remark. Coupled with stock valuations near the highest in two decades, it was enough to deliver the worst day for the Nasdaq 100 since March, even as the Federal Reserve has assured markets that interest rates will remain at current lows throughout the
recovery.
“The market’s focus will still be on growth restoration and how Covid develops over time,” said Cecilia Chan, HSBC Asset Management Asia-Pacific chief investment officer, on Bloomberg Television. She downplayed concerns about inflation and added that “the central bank will remain dovish.”
Futures on the S&P 500 Index gained 0.3% as of 8:51 am London time and the Stoxx Europe 600 Index climbed as much as 1.2%.
While the MSCI Asia Pacific Index decreased 0.3%, the MSCI Emerging Market Index dipped 0.3%.
The Bloomberg Dollar Spot Index rises 0.1% and the euro sinks 0.2% to $1.1993.
While the British pound was little changed at $1.389, the onshore yuan was little changed at 6.475 per dollar and the Japanese yen weakened 0.1% to 109.43 per dollar.
The yield on 10-year Treasuries rise one basis point to 1.60% and the yield on two-year Treasuries rose less than one basis point to 0.16%.
While Germany’s 10-year yield rise two basis points to -0.22%, Britain’s 10-year yield jumped two basis points to around 0.815% and Japan’s
10-year yield was unchanged
at 0.097%.
West Texas Intermediate crude increased 1.2% to $66.45 a barrel, Brent crude gained 1.2% to $69.71 a barrel. Gold weakened 0.1% to $1,777.36 an ounce.