Europe Stocks Gain on Earnings; Futures Erase Drop: Markets Wrap

(Bloomberg) -- European stocks jumped, with positive earnings and solid German manufacturing data putting them on track for the first increase this week. U.S. futures erased losses.

The Stoxx Europe 600 Index extended early gains after a report showed German manufacturing continued its solid recovery from lockdowns earlier this year, offsetting growing weakness elsewhere in the economy. Treasuries pared earlier gains and the dollar turned lower. The euro reversed a decline as aggregate manufacturing data for the single-currency region also beat estimates.

Carmaker shares rose in Europe after Germany’s Daimler AG boosted its full-year profit forecast, while bank stocks were buoyed by Barclays Plc’s earnings beat. Swiss elevator maker Schindler Holding AG jumped after boosting its forecast.

With the S&P 500 still teetering on its worst weekly decline this month, investors are finely tuned into developments in Washington, where House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are trying to hammer out details of a nearly $2 trillion aid package. Opposition remains in the Republican-controlled Senate, making a pact before the election less likely.

Elsewhere, there is increasing evidence that the pandemic is worsening. German infections have jumped to a record and Spain’s health minister said the spread of coronavirus is out of control in certain parts of the country. U.S. hospitalizations for Covid-19 have reached a two-month high.

These are some of the main market moves:

Stocks

The Stoxx Europe 600 Index gained 0.8% as of 8:55 a.m. London time.Futures on the S&P 500 Index rose 0.1%.Nasdaq 100 Index futures climbed 0.2%.The MSCI Asia Pacific Index increased 0.2%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.1%.The British pound rose 0.1% to $1.3092.The Japanese yen strengthened 0.2% to 104.70 per dollar.The Turkish lira weakened 0.3% to 7.9561 per dollar.

Bonds

The yield on 10-year Treasuries decreased one basis point to 0.85%.Germany’s 10-year yield declined one basis point to -0.58%.Britain’s 10-year yield rose less than one basis point to 0.285%.Australia’s 10-year yield climbed five basis points to 0.861%.

Commodities

West Texas Intermediate crude decreased 0.4% to $40.48 a barrel.Gold strengthened 0.2% to $1,908.47 an ounce.Natural gas dipped 2.3% to $2.94 per mmbtu.Iron ore sank 2.7% to $113.65 per metric ton.

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