Stocks, Futures Up on Vaccine Progress; Oil Rises: Markets Wrap

(Bloomberg) -- European stocks rose Friday, tracking Asian and U.S. peers as vaccine distribution boosted economic optimism despite an increase in Covid-19 cases. Oil climbed amid a prolonged effort to unblock the Suez Canal.

All industrial sectors in the Stoxx Europe 600 index advanced, with shares in miners, energy and auto firms leading gains amid a rotation into cyclical re-opening trades. U.S. futures pointed higher after the S&P 500 advanced and small-caps rallied, buoyed by President Joe Biden’s doubling of a vaccination target.

Ten-year U.S. Treasury yields rose slightly after another lackluster auction of seven-year notes. The reaction was muted compared with the upheaval in bonds and interest-rate sensitive stocks following poor demand at last month’s sale. The dollar dipped but remained on course for its best week in three.

Crude prices headed back up above $60 a barrel. Efforts to dislodge the massive Ever Given container vessel blocking the Suez Canal will take until at least next Wednesday, raising the prospect of wider disruptions to trade.

Global equities remain just under record highs as investors consider progress in the fight against Covid-19 and the risks of inflation from heavy stimulus. The U.S. recovery looks on track with latest data showing a bigger-than-forecast drop in weekly jobless claims. Federal Reserve Chair Jerome Powell​ reiterated the U.S. central bank would wait until the economy has “all but fully recovered” to pull back extraordinary monetary support.

In his first news conference since taking office, Biden highlighted the rivalry with China and declined to comment on whether import tariffs would remain in place. He said he’s open to diplomacy with North Korea but warned recent missile tests violated international rules and could prompt a response.

Elsewhere, Bitcoin clawed back earlier losses to trade above $53,000.

These are some of the main moves in financial markets:

Stocks

• Futures on the S&P 500 Index climbed 0.4% as of 8:49 a.m. London time.
• The Stoxx Europe 600 Index climbed 0.8%.
• The MSCI Asia Pacific Index surged 1.3%.
• The MSCI Emerging Market Index surged 1.4%.

Currencies

• The Bloomberg Dollar Spot Index declined 0.2%.
• The euro gained 0.2% to $1.1785.
• The British pound jumped 0.3% to $1.3778.
• The onshore yuan strengthened 0.1% to 6.539 per dollar.
• The Japanese yen weakened 0.2% to 109.45 per dollar.

Bonds

• The yield on 10-year Treasuries gained two basis points to 1.65%.
• The yield on two-year Treasuries dipped less than one basis point to 0.13%.
• Germany’s 10-year yield rose three basis points to -0.36%.
• Japan’s 10-year yield decreased less than one basis point to 0.083%.
• Britain’s 10-year yield jumped three basis points to 0.761%.

Commodities

• West Texas Intermediate crude gained 2.6% to $60.07 a barrel.
• Brent crude increased 2.4% to $63.43 a barrel.
• Gold strengthened 0.1% to $1,728.36 an ounce.

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