U.S. Futures Fluctuate as Stocks Rise With Dollar: Markets Wrap

(Bloomberg) -- U.S. futures fluctuated while stocks climbed on Thursday as investors weighed increased friction between America and China against fresh fiscal stimulus from the European Union. Treasuries edged higher with the dollar.

Contracts on the S&P 500 wobbled as Sino-American tensions flared again, with Chinese lawmakers approving a proposal for new national-security legislation in Hong Kong, in defiance of President Donald Trump. Nasdaq 100 futures slipped on a report Trump is preparing to sign an executive order that could penalize social-media giants for the way they moderate content on their sites.

The Stoxx Europe 600 rose for a fourth session, a day after the EU unveiled 2.4 trillion euros ($2.6 trillion) in promised spending to battle the impact of the coronavirus. A gauge of euro-area confidence inched up from a record low, adding to the bullish mood. West Texas oil hovered at about $32 a barrel after an industry report raised fresh concerns about excess supply.

Global stocks have recovered to levels last seen in early March on fresh stimulus measures and hopes that economies are on the mend as lockdowns ease. While U.S. deaths from the virus reached 100,000, Federal Reserve Bank of St. Louis President James Bullard said the American economy may already have bottomed. Australia’s central bank chief said that country’s downturn may not be as severe as first thought.

Investors are responding to signs of recovery by rotating into stocks most punished in the coronavirus crash. Norwegian Cruise Line and Royal Caribbean Cruises are up more than 25% on Wall Street this week, while Europe’s TUI AG tour operator, Cineworld Group and EasyJet Plc airline have surged more than 35%. Traders will be closely watching today’s unemployment numbers in Washington for further clues on the state of the U.S. economy.

Elsewhere, shares climbed throughout most of Asia, though the Hang Seng Index flirted with the lowest level since March after the U.S. said it could no longer certify Hong Kong’s political autonomy, a move that could have far-reaching consequences. Gold edged higher.

Here are some key events coming up:

• Thursday brings the U.S. jobless claims reading for the week ended May 23.
• Federal Reserve Chairman Jerome Powell participates in a virtual discussion on Friday.
• Euro-area data due Friday is forecast to show consumer inflation fell to 0.1% in May from 0.4% the previous month.

These are the main moves in markets:

Stocks

• Futures on the S&P 500 Index dipped 0.1% as of 6:15 a.m. New York time.
• The Stoxx Europe 600 Index gained 0.7%.
• The MSCI Asia Pacific Index rose 0.8%.
• The MSCI Emerging Market Index decreased 0.1%.

Currencies

• The Bloomberg Dollar Spot Index gained 0.1%.
• The euro was little changed at $1.1001.
• The British pound sank 0.2% to $1.2241.
• The onshore yuan strengthened 0.2% to 7.157 per dollar.
• The Japanese yen was little changed at 107.75 per dollar.

Bonds

• The yield on 10-year Treasuries fell one basis point to 0.67%.
• The yield on two-year Treasuries dipped one basis point to 0.17%.
• Germany’s 10-year yield fell three basis points to -0.44%.
• Britain’s 10-year yield dipped less than one basis point to 0.19%.
• Japan’s 10-year yield decreased less than one basis point to 0.002%.

Commodities

• West Texas Intermediate crude declined 1.9% to $32.18 a barrel.
• Brent crude dipped 1.5% to $34.23 a barrel.
• Gold strengthened 0.7% to $1,721.89 an ounce.

©2020 Bloomberg L.P.