Stocks Rise With Futures on Earnings; Bonds Steady: Markets Wrap

(Bloomberg) -- Stocks in Europe climbed Friday with U.S. futures, following Wall Street higher on signs of a healing labor market and mostly healthy corporate earnings. Treasuries were steady after a widely-watched segment of the yield curve steepened to levels last seen in 2015.

The Stoxx Europe 600 advanced for a fifth day, heading for its best weekly gain since November, with Vinci SA, the region’s largest construction company, rising after reporting earnings that beat estimates. Drugmaker Sanofi SA and insurer Beazly Plc also jumped after better-than-expected results. S&P 500 futures ticked higher after the benchmark closed up more than 1% at a record.

Crude oil advanced and gold steadied after Thursday’s decline. The dollar slipped for the first day in three.

Global equities are flirting with all-time highs as corporate profits rebound and central banks remain supportive amid the pandemic. U.S. President Joe Biden’s push to fast-track a $1.9 trillion stimulus package has also boosted sentiment. A report Thursday showed U.S. jobless claims fell to the lowest since November, and investor focus now turns to payroll data Friday.

“The economic data is coming in very strong,” Andrew Slimmon, fund manager at Morgan Stanley Investment Management, said on Bloomberg TV. “The market is going to struggle at some point this year, but at the moment it’s too early because the numbers are still coming through.”

On the virus front, restrictions are lifting around the U.S. as the outbreak eases. The Bank of England forecast that the U.K. economy is heading for a powerful rebound thanks to an aggressive push to vaccinate citizens. France said a new lockdown is not justified at the moment.

There are the main moves in markets:

Stocks

• The Stoxx Europe 600 index climbed 0.3% by 8:16 a.m. in London.
• S&P 500 futures added 0.2%.
• The MSC Asia Pacific index rose 0.7%

Bonds

• The yield on 10-year Treasuries dipped one basis point to 1.14%.
• Germany’s 10-year yield was litthe changed at -0.46%.
• The U.K.’s 10-year yield rose one basis point to 0.45%.

Currencies

• The Bloomberg Dollar Spot Index slipped 0.1%.
• The euro was at $1.1967, up 0.1%.
• The yen rose 0.1% to 105.46 per dollar.
• The British pound gained 0.2% to $1.3698.

Commodities

• West Texas Intermediate crude advanced 0.9% to $56.74 a barrel.
• Gold was at $1,805 an ounce, up 0.6%.

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