Stocks Edge Up as China Optimism Boosts Sentiment: Markets Wrap

(Bloomberg) --

Stocks mostly edged higher on Wednesday as improving prospects for the world’s second-biggest economy helped lift investor sentiment as the earnings season rumbled on. Bond fell and the dollar nudged lower.

Futures on the S&P 500 pointed to a gain at the New York open after data showed China’s economic growth, industrial production and retail sales all better-than-expected and Bloomberg reported the country’s leaders are considering more stimulus. The Stoxx Europe 600 Index erased a drop as an advance for car makers offset declines for healthcare companies. Shares rose in Japan and Shanghai. The yield on 10-year Treasuries climbed to a four-week high, while rates on European debt rose in concert. The euro strengthened even as Germany’s economy ministry revised its growth forecast lower.

For now, optimism about China -- where the economy held up in the first three months as policy makers boosted stimulus to sustain growth -- seems to be outweighing lingering concerns about the euro area. Traders are also focusing on corporate earnings as the season ramps up. PepsiCo posted quarterly results that beat estimates Wednesday, while BNY Mellon is among major names due to report.

Elsewhere, oil climbed after a report showed a surprise drop in crude inventories. The New Zealand dollar retreated after inflation slowed more than forecast, while the Australian dollar rose after the Chinese data.

Here are some notable events coming up:

• Earnings season rolls on this week, with reports due from American Express, Honeywell, Alcoa and Taiwan Semiconductor among others.
• A swathe of financial markets will close across the Western world for the Good Friday holiday, including in the U.S., U.K. and Germany.

These are the main moves in markets:

Stocks

• The Stoxx Europe 600 Index decreased less than 0.1 percent as of 6:44 a.m. New York time.
• Futures on the S&P 500 Index rose 0.2 percent.
• The MSCI All-Country World Index advanced 0.1 percent to the highest in more than six months.
• The U.K.’s FTSE 100 Index declined 0.1 percent.
• The MSCI Emerging Market Index jumped 0.3 percent to the highest in 10 months.

Currencies

• The Bloomberg Dollar Spot Index dipped 0.1 percent.
• The euro gained 0.2 percent to $1.1307, the strongest in more than three weeks.
• The British pound advanced less than 0.05 percent to $1.3051.
• The Japanese yen fell less than 0.05 percent to 112.03 per dollar.

Bonds

• The yield on 10-year Treasuries climbed one basis point to 2.60 percent, the highest in more than four weeks.
• Germany’s 10-year yield rose two basis points to 0.09 percent.
• Britain’s 10-year yield rose two basis points to 1.24 percent.
• Japan’s 10-year yield rose two basis points to -0.006 percent.

Commodities

• West Texas Intermediate crude increased 0.7 percent to $64.50 a barrel, the highest in a week.
• Gold fell 0.1 percent to $1,276.05 an ounce, hitting the weakest in almost 16 weeks with its fifth consecutive decline.
• The Bloomberg Commodity Index climbed 0.4 percent.

©2019 Bloomberg L.P.