(Bloomberg) — European stocks and U.S. futures rebounded from Tuesday’s sell-off in technology shares as focus turned to positive earnings and signs of economic recovery from the pandemic.
The Stoxx 600 Index jumped more than 1%, with miners and travel shares among the benchmark’s biggest gainers. Tech stocks bounced back from Tuesday’s rout sparked by fears of quickening inflation. Shares of Hugo Boss AG climbed after first quarter sales beat analyst estimates, while Novo Nordisk A/S gained after the drugmaker raised its profit and sales forecasts for the year. U.S. equity futures drifted higher, while Asian stocks were mixed.
Growing faith in an economic rebound sent commodities prices to their highest levels in almost a decade. Copper traded around $10,000 a ton and oil topped $66 a barrel. The dollar strengthened, while Treasuries were steady.
Treasury Secretary Janet Yellen rattled markets on Tuesday with comments that interest rates may have to rise moderately to keep the economy from overheating, though she later softened the remark. Coupled with stock valuations near the highest in two decades, it was enough to deliver the worst day for the Nasdaq 100 since March, even as the Federal Reserve has assured markets that interest rates will remain at current lows throughout the recovery.
Read: Nasdaq 100’s Worst Day Since March Sparked by Inflation Fears
“The market’s focus will still be on growth restoration and how Covid develops over time,” said Cecilia Chan, HSBC Asset Management Asia-Pacific chief investment officer, on Bloomberg Television. She downplayed concerns about inflation and added that “the central bank will remain dovish.”
Elsewhere, India’s stocks and bonds gained after the central bank approved 500 billion rupees ($6.8 billion) of liquidity to banks to support lending to vaccine makers, hospitals and providers of health services.
Here are some key events to watch this week:
U.S. ADP employment change is due WednesdayChicago Fed President Charles Evans gives a virtual speech at an event hosted by Bard College on Wednesday. Cleveland Fed President Loretta Mester gives a virtual speech to the Boston Economic ClubBank of England rate decision ThursdayThe April U.S. employment report is released on Friday
These are some of the main moves in markets:
Futures on the S&P 500 Index gained 0.3% as of 8:51 a.m. London time.The Stoxx Europe 600 Index climbed 1.2%.The MSCI Asia Pacific Index decreased 0.3%.The MSCI Emerging Market Index dipped 0.3%.
The Bloomberg Dollar Spot Index rose 0.1%.The euro sank 0.2% to $1.1993.The British pound was little changed at $1.389.The onshore yuan was little changed at 6.475 per dollar.The Japanese yen weakened 0.1% to 109.43 per dollar.
The yield on 10-year Treasuries rose one basis point to 1.60%.The yield on two-year Treasuries rose less than one basis point to 0.16%.Germany’s 10-year yield rose two basis points to -0.22%.Britain’s 10-year yield jumped two basis points to 0.815%.Japan’s 10-year yield was unchanged at 0.097%.
West Texas Intermediate crude increased 1.2% to $66.45 a barrel.Brent crude gained 1.2% to $69.71 a barrel.Gold weakened 0.1% to $1,777.36 an ounce.
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