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Bloomberg
Stocks advanced on Tuesday along with US index futures at the outset of one of the most uncertain earnings seasons on record, after the coronavirus pandemic upended the global economy. Oil edged up, while gold slipped from a seven-year high.
The Stoxx Europe 600 Index opened in the green, with the benchmark up 20% from its 2020 low. Futures on the three main American equity gauges all climbed as traders prepared for profit reports from global heavyweights including JPMorgan Chase & Co. and Wells Fargo & Co. Shares rose across Asia, though volumes were more than 30% below average in many markets. Treasuries nudged higher, while the dollar fluctuated versus many of its major peers. Spot gold dipped from its highest close since 2012, though still held above $1,700 an ounce.
Earnings season kicks off this week with some of the world’s biggest banks reporting, giving investors their first glimpse of how bad the hit to global profits will be. Goldman Sachs Group Inc. forecast advanced economies will shrink about 35% this quarter from the prior three months. Meanwhile, investors are keeping an eye on the timing of lockdowns. India and France extended their restrictions, while others including Germany and the UK face decisions on whether to keep measures in place.
Elsewhere, oil futures edged higher, drawing support from the commitment by the biggest producers to curb output even as doubts remain as to whether the cuts will be enough to offset the demand destruction caused by coronavirus (Covid-19) pandemic.
Banks and financial firms begin reporting first-quarter earnings, led by JPMorgan and Wells Fargo on Tuesday; Wednesday will bring Citigroup, Bank of America and Goldman Sachs Group Inc.; BlackRock is set for Thursday.
The Stoxx Europe 600 Index rose 0.9% as of 8:20 am London time. Futures on the S&P 500 Index climbed 1.2%.
While Germany’s DAX Index increased 1.2%, the MSCI Asia Pacific Index rose 1.6%. The Bloomberg Dollar Spot Index decreased 0.1% and the euro increased 0.2% to $1.0933.
While the British pound gained 0.4% to $1.2565, the Japanese yen strengthened 0.1% to 107.67 per dollar and South Africa’s rand strengthened 0.6% to 18.0226 per dollar.
The yield on two-year Treasuries decreased less than one basis point to 0.24% and the yield on 10-year Treasuries declined one basis point to around 0.76%.
While Germany’s 10-year yield rose less than one basis point to -0.34%, Japan’s 10-year yield fell less than one basis point to 0.022%.
West Texas Intermediate crude climbed 0.8% to $22.60 a barrel and gold weakened 0.2% to $1,712.41 an ounce. LME copper rose 2.7% to $5,153 per metric ton.