Stocks Gain as Earnings Take Focus Off Bonds: Markets Wrap

(Bloomberg) -- Stocks in Europe snapped their longest streak of losses since October as Treasuries steadied, while attention shifted to corporate earnings and economic data. Oil added to recent losses.

The Stoxx Europe 600 index fluctuated before heading higher for the first time in four days, with luxury-goods maker Hermes International climbing more than 5% after reporting a jump in fourth-quarter sales. Futures on the S&P 500 and Nasdaq 100 gained and the dollar weakened.

With the yield on the 10-year Treasury benchmark settling back around 1.3%, the focus is turning to corporate earnings reports. Rising yields dominated discussion this week and raised concern about the staying power of the New Year rally. The fear is that a rise in borrowing costs and price pressures could derail the economic recovery.

Recent economic data are a reminder of the fragility of the growth backdrop, with a report Friday showing U.K. retail sales fell more than twice as fast as expected in January.

The euro strengthened after Germany’s manufacturing PMI climbed more than forecast in February, though composite figures for the common-currency region were less encouraging. The British pound briefly rallied above $1.40 for the first time since 2018.

Oil fell below $60 a barrel as wells slowly restarted in Texas after being hit by a big freeze. The White House said it would be willing to meet with Iran, potentially paving the way for more crude exports from the Persian Gulf nation. Elsewhere, gold slid amid its worst start to a year in three decades.

These are some of the main moves in markets:

Stocks

• The Stoxx Europe 600 index climbed 0.4% by 11 a.m. in London.
• S&P 500 futures added 0.3%.
• The MSCI Asia Pacific index was little changed.
• MSCI’s Emerging Markets index rose 0.2%.

Currencies

• The Bloomberg Dollar Spot Index slipped 0.3%.
• The yen advanced 0.4% to 105.32 per dollar.
• The euro strengthened 0.4% to $1.2141.
• The pound gained 0.2% to $1.4002.

Bonds

• The yield on 10-year Treasuries rose one basis point to 1.308%.
• Germany’s 10-year yield rose two basis points to -0.33%.
• The U.K. 10-year yield climbed three basis points to 0.65%.

Commodities

• West Texas Intermediate crude declined 2% to $59.30 a barrel.

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