Stocks, U.S. Futures Rise as Traders Mull Recovery: Markets Wrap

(Bloomberg) — European stocks rose along with U.S. equity futures Thursday as traders took in their stride further signs of the global inflationary pressures building up in the recovery from the pandemic.

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U.S. futures pushed higher after Wall Street snapped a three-day losing streak, with contracts on the tech-heavy Nasdaq 100 outperforming those on the S&P 500. Tech firms were also among the biggest gainers in the Stoxx Europe 600 index, along with miners.

Treasuries trimmed an overnight rally, but the 10-year yield remained around 1.5%. A report showed U.S. inflation held above 5%, while the latest Fed minutes signaled a tapering of bond purchases from mid-November or mid-December.

Crude oil stabilized above $80 a barrel and gold dipped from the highest in nearly a month. The U.S. dollar weakened against all Group of 10 peers except the yen.

Investors continue to evaluate the resilience of economic reopening to supply chain disruptions, a jump in energy prices and the prospect of reduced central bank support. In the earnings season so far, executives at S&P 500 companies mentioned the phrase “supply chain” about 3,000 times on investor calls as of Tuesday — far higher than last year’s then-record figure.

The current environment “still favors equities in the medium term although less so than before,” Virginia Martin Heriz, a portfolio manager in the macro strategies team at J.P.Morgan Asset Management, said in a seminar. While there may be a “soft” slowdown in the U.S. and Europe, “this is not stagflation that we are talking about because we are still growing well above trend.”

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In cryptocurrencies, Bitcoin has resumed its rally, taking the largest token above $58,000. Elsewhere, Hong Kong markets were shut Thursday for a holiday.

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