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Stocks Advance on Earnings, China; Euro Trims Drop: Markets Wrap: Bloomberg

  • China signals moves to help economy; Shanghai stocks advance
  • Alphabet rallies on results; German data helps common currency

European stocks rose and U.S. equity futures edged higher as a slew of positive earnings boosted investor sentiment and after China’s efforts to support its economy spurred higher-risk assets across Asia. The euro cut an earlier decline after German manufacturing data.

Carmakers and miners were among the biggest winners in the Stocks Europe 600 Index, as PSA Group showed subsidiary Opel turned a profit and lender UBS Group AG gained on better-than-forecast results. Futures for the Dow, S&P 500 and Nasdaq indexes pointed to a firm open, with Google parent Alphabet climbing. Shares in Asia rallied on news China will increase spending on infrastructure among other measures to bolster growth. The yuan slipped a day after a record injection of funding for banks.

The euro was boosted as data showed the continent’s biggest economy has so far bucked worries over disruption to trade. Treasuries edged higher and most European sovereign bonds slipped.

China’s moves to shore up growth in the face of a rumbling trade war are proving reassuring for investors, who are also taking heart from upbeat corporate results from the likes of Alphabet. More earnings will roll in as the week grinds on, while the path of monetary policy will be back in focus as the European Central Bank meets to decide interest rates.

Elsewhere, West Texas Intermediate crude oil held below $68 a barrel and gold was steady.

Terminal users can follow our Markets Live blog here.

Here are some key events coming up this week:

  • Earnings season continues with the following tech companies among those reporting: Facebook, Amazon.com, Twitter, Advanced Micro Devices, Qualcomm and Intel. They are joined by global financial giants Deutsche Bank, Nomura and Visa. Others include Halliburton, Michelin, Boeing, Lockheed, Nissan and Shell.
  • Turkey has a rate decision on Tuesday.
  • Pakistan holds national elections Wednesday.
  • The European Central Bank’s policy decision is Thursday.
  • U.S. gross domestic product probably increased by about 4 percent at an annualized rate in the second quarter, the most since 2014, economists forecast ahead of Friday’s data.

Terminal users can follow our Markets Live blog here.

These are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index climbed 0.7 percent as of 9:34 a.m. London time.
  • Futures on the S&P 500 Index gained 0.2 percent.
  • The MSCI All-Country World Index rose 0.2 percent to the highest in more than five weeks.
  • The MSCI Emerging Market Index increased 0.6 percent to the highest in more than a month.

Currencies

  • The Bloomberg Dollar Spot Index declined less than 0.05 percent.
  • The euro fell less than 0.05 percent to $1.1687.
  • The British pound climbed 0.1 percent to $1.3112.
  • The Japanese yen increased 0.1 percent to 111.21 per dollar, reaching the strongest in two weeks on its fifth straight advance.

Bonds

  • The yield on 10-year Treasuries fell less than one basis point to 2.95 percent.
  • Germany’s 10-year yield gained less than one basis point to 0.41 percent, the highest in almost six weeks.
  • Britain’s 10-year yield climbed one basis point to 1.279 percent, the highest in more than a week.

Commodities

  • The Bloomberg Commodity Index declined less than 0.05 percent.
  • West Texas Intermediate crude decreased 0.1 percent to $67.84 a barrel.
  • LME copper increased 0.6 percent to $6,164.50 per metric ton, the highest in more than a week.
  • Gold fell less than 0.05 percent to $1,224.31 an ounce.

By July 24, 2018, 6:37 PM GMT+10

— With assistance by Tian Chen, and Andreea Papuc

Source: Bloomberg

 

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