European stocks surge with US futures; dollar declines

Bloomberg

European stocks rose with US futures on Thursday as hopes for reassuring jobs data later in Washington added to momentum from positive vaccine developments. The dollar slipped.
The Stoxx Europe 600 Index extended its initial gains on advances in banks and travel companies. Contracts on the S&P 500 Index also picked up, hours before the June employment report that’s coming a day early because markets will close on Friday for the July 4 holiday. Economists expect a rise of just over 3 million jobs and the second consecutive month of gains.
Investors who are driving stocks higher know there’s still a host of threats on the horizon, from fresh virus outbreaks in Japan and the US to moves in Congress to sanction China. Minutes of the Federal Reserve’s June meeting revealed that various participants viewed the economy needing support “for some time.”
“There’s this inherent tension between health of the economy and health of the population,” said David Lebovitz, a global market strategist at JPMorgan Asset Management. “It’s going to be the way to think about what drives markets over the next couple of weeks or months.”
Hong Kong shares outperformed after traders returned from a holiday, despite the recent tensions over China’s new national security law over the city. The Shanghai Composite turned positive for the year to date. Stocks in Australia, China, Japan and South Korea also rose.
Elsewhere, oil futures climbed for a second session, helped by a strong drawdown in crude stockpiles. The decline for the Bloomberg Dollar Index took it to its lowest in over a week, while Treasuries were steady.
Futures on the S&P 500 Index climbed 0.6% as of 9:07 am London time and the Stoxx Europe 600 Index advanced 0.8%.
While the UK’s FTSE 100 Index rose 0.6%, the MSCI Asia Pacific Index was little changed. The MSCI Emerging Market Index advanced 0.6%.
While the Bloomberg Dollar Spot Index fell 0.2%, the euro edged up 0.3% to $1.1280.
The British pound climbed 0.3% to $1.2505 and the onshore yuan strengthened 0.1% to 7.066 per dollar. The Japanese yen was little changed at 107.47 per dollar.
The yield on 10-year Treasuries declined less than one basis point to 0.67% and the yield on two-year Treasuries increased less than one basis point to 0.16%.
While Germany’s 10-year yield fell less than one basis point to -0.40%, Britain’s 10-year yield gained four basis points to 0.211%. Japan’s 10-year yield declined one basis point to 0.036%.