Nasdaq leads futures higher as yields drop

Bloomberg

The Nasdaq 100 Index led US equity futures higher while Treasury yields were poised for a third day of declines.
Futures on the S&P 500 and Dow Jones Industrial Average also pointed to a recovery in the underlying gauges which slipped amid a setback for reopening favourites. Government bond yields fall across Europe.
Assurances by Federal Reserve Chairman Jerome Powell on inflation risks have helped to stabilize the selloff in the bond market and may lend impetus to the flagging reflation rally. At the same time, both the central bank and US
government have pledged continued support to foster economic recovery.
West Texas Intermediate crude rallied from its slump but remained below $60 a barrel. Renewed lockdowns in Europe hurt prospects for a rapid recovery in oil consumption. Bitcoin rose after Tesla Inc. Chief Executive Officer Elon Musk tweeted that the firm’s cars can be purchased with the largest cryptocurrency.
European stocks opened modestly lower, with cyclical stocks including banks and auto firms suffering some of the steepest declines. A gauge of Asia-Pacific shares falls the most in about two weeks. Hong Kong equities fell to a 10% correction in five weeks amid the city’s decision to temporarily suspend BioNTech SE vaccines.
Market sentiment has faltered on doubts about the progress of the global economic reopening. Germany, France and Italy have widened virus-related curbs and infections are spiking elsewhere. The head of the World Health Organization called recent increases in deaths and cases “truly worrying trends.” These concerns are adding to the
ripple effects of quarter-end portfolio rebalancing across markets.
“There is some Covid angst in the air again,” according to strategists at ING Groep NV including Padhraic Garvey. “The market seems less convinced that the vaccination race against the third pandemic wave can be won quickly.”
Futures on the S&P 500 Index increased 0.3% as of 8:58 am London time and
the Stoxx Europe 600 Index decreased 0.1%.
While the MSCI Asia Pacific Index dipped 1.4%, the MSCI Emerging Market Index dipped 1.1%.
The Bloomberg Dollar Spot Index rises 0.1% and the euro falls 0.2% to $1.1825.
The British pound sank 0.4% to $1.3696 and the onshore yuan weakened 0.1% to 6.522 per dollar. The Japanese yen was little changed at 108.64 per dollar.
While the yield on 10-year Treasuries dipped one basis point to 1.61%, the yield on two-year Treasuries decreased less than one basis point to 0.14%. Germany’s 10-year yield fall two basis points
to -0.36%.
Japan’s 10-year yield declined one basis point to 0.073% and Britain’s 10-year yield sank two basis points to 0.739%.
While West Texas Intermediate crude gained 2.1% to $58.95 a barrel, Brent crude gained 2% to $62.02 a barrel.