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Bloomberg
Stocks climbed while US futures fluctuated on Thursday as investors weighed fresh fiscal stimulus from the European Union against increased friction between America and China. Treasuries drifted.
The Stoxx Europe 600 opened in the green for a fourth day after the EU unveiled 2.4 trillion euros ($2.6 trillion) in total recovery spending to battle the impact of the coronavirus. S&P 500 contracts wobbled as Chinese lawmakers approved a proposal for new national-security legislation in Hong Kong, defying President Donald Trump. Nasdaq 100 futures fluctuated on a report Trump is preparing to sign an executive order that could penalise tech giants for the way they moderate content on their sites.
Shares climbed throughout most of Asia, though the Hang Seng Index flirted with the lowest level since March after the US said it could no longer certify Hong Kong’s political autonomy, a move that could have far-reaching consequences. West Texas oil fell below $32 a barrel after an industry report raised fresh
concerns about excess supply.
Global stocks are trading near levels not seen since early March on fresh stimulus measures and hopes that economies are on the mend as lockdowns ease. While US deaths from the virus reached 100,000, Federal Reserve Bank of St. Louis President James Bullard said the American economy may already have bottomed. Australia’s central bank chief said that country’s downturn may not be as severe as first thought.
Investors are responding to signs of recovery by rotating into stocks most punished in the coronavirus crash. Norwegian Cruise Line and Royal Caribbean Cruises are up more than 25% on Wall Street this week, while Europe’s TUI AG, Cineworld Group and EasyJet Plc have surged more than 35%. Traders will be closely watching today’s unemployment numbers in Washington for further clues on the state of the US economy.
Elsewhere, gold edged higher. Euro-area data due on Friday is forecast to show consumer inflation fell to 0.1% in May from 0.4% the previous month.
Futures on the S&P 500 Index were little changed at 9:37 am London time and the Stoxx Europe 600 Index rose 1%. While the MSCI Asia Pacific Index gained 0.7%, the MSCI Emerging Market Index dipped 0.1%.
The Bloomberg Dollar Spot Index jumped 0.2% and the euro decreased 0.1% to $1.0997.
While the British pound dipped 0.1% to $1.2249, the onshore yuan strengthened 0.1% to 7.159 per dollar and the Japanese yen weakened 0.1% to 107.84 per dollar.
The yield on 10-year Treasuries decreased less than one basis point to 0.68% and the yield on two-year Treasuries dipped one basis point to 0.17%. As Germany’s 10-year yield fell one basis point to -0.42%, Britain’s 10-year yield gained one basis point to 0.198%.
Japan’s 10-year yield dipped less than one basis point to 0.002%.
While West Texas Intermediate crude declined 3.3% to $31.72 a barrel, Brent crude dipped 2.9% to $33.74 a barrel. Gold strengthened 0.7% to $1,721.19 an ounce.