(Bloomberg) — U.S. equity futures climbed Tuesday, buoyed by another record Wall Street close that’s been guided by supportive Fed policy and rebounding corporate earnings.
S&P 500 and Nasdaq 100 futures rose after the S&P 500 hit an all-time high. European equities posted modest gains, on the cusp of their longest monthly winning streak since 2013, led higher by miners, technology stocks and autos.
Treasuries extended gains made on Federal Reserve Chair Jerome Powell’s measured comments on the pace of stimulus withdrawal, with the yield on the 10-year benchmark dipping below 1.3%. The dollar weakened.
Global stocks are set for a seventh monthly advance on strong company profits, expanding vaccinations to underpin economic reopening and moderate monetary policy. At the same time, the decline in Treasury yields from a March peak may partly reflect concerns of a slower recovery ahead on risks such as the impact of the delta strain.
Powell, in a highly anticipated speech last week, stressed that the central bank could start slowing its debt purchases in 2021, though it won’t rush to begin raising rates thereafter. He didn’t give a specific timeline for scaling back stimulus. Traders now await key payrolls data Friday for a read on the economy’s strength and to help shape bets on the Fed’s next move on bond tapering.
“Strong job additions will certainly boost the investor appetite, along with the Fed’s cautious steps toward bond tapering,” according to Swissquote Bank analyst Ipek Ozkardeskaya. “A disappointment on the data front could lead to some profit taking, but nothing major.”
Elsewhere, MSCI Inc.’s Asia-Pacific equity index hit a more than two-week high, weathering signs of weaker economic activity in China.
Oil edged lower, with traders assessing the prospect of additional OPEC+ production. Aluminum and nickel advanced as Goldman Sachs Group Inc. raised target prices.
In cryptocurrencies, Bitcoin fell to about $47,000.
Here are some key events to watch this week:
OPEC+ meeting on output WednesdayEuro zone manufacturing PMI WednesdayU.S. jobs report Friday
For more market analysis read our MLIV blog.
Some of the main moves in markets:
Stocks
Futures on the S&P 500 Index increased 0.3% as of 8:52 a.m. London time.The Stoxx Europe 600 Index climbed 0.2%.The MSCI Asia Pacific Index rose 1%.The MSCI Emerging Market Index rose 1.2%.
Currencies
The Bloomberg Dollar Spot Index sank 0.2%.The euro jumped 0.2% to $1.1825.The British pound gained 0.2% to $1.3782.The onshore yuan strengthened 0.1% to 6.46 per dollar.The Japanese yen strengthened 0.1% to 109.80 per dollar.
Bonds
The yield on 10-year Treasuries fell one basis point to 1.27%.The yield on two-year Treasuries dipped less than one basis point to 0.20%.Germany’s 10-year yield decreased less than one basis point to -0.44%.Japan’s 10-year yield gained less than one basis point to 0.024%.Britain’s 10-year yield gained six basis points to 0.641%.
Commodities
West Texas Intermediate crude declined 0.4% to $68.90 a barrel.Brent crude was little changed at $73.42 a barrel.Gold strengthened 0.3% to $1,815.77 an ounce.
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