Global Stocks Hit Record as U.S. Futures Steady: Markets Wrap

Namitha Jagadeesh
·2 min read

(Bloomberg) -- Global stocks hit all-time highs on Friday and U.S. futures were steady as record growth figures from China highlighted the strength of the recovery.

The Stoxx Europe 600 Index was poised for a seventh week of advances, its longest streak since May 2018, as investors continued to boost cyclicals such as carmakers and banks, while defensive sectors lagged. In Asia, Chinese shares outperformed after a report showed the nation’s economy soared in the first quarter.

The data from Beijing added to Thursday’s string of positive economic figures out of the U.S., boosting futures on the small-cap Russell 2000 and Dow Jones Industrial Average indexes. Treasuries held onto Thursday’s gain, with traders suggesting foreign buying and geopolitical risks may have contributed to the advance.

Along with healthy corporate earnings, China’s first-quarter gross domestic product numbers are giving fresh impetus to the reflation trade. In the U.S., Thursday’s retail sales and weekly jobless claims data signaled an accelerating recovery in the world’s biggest economy. Investors will look for further confirmation as the reporting season picks up pace next week, with around 80 S&P 500 members and more than 50 Stoxx 600 firms announcing.

“As the economic reopening accelerates in the coming months, we believe the bull market remains on a solid footing,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “We maintain a cyclical bias and prefer U.S. consumer discretionary, energy, financials and industrials.”

Elsewhere, copper remained on course for the best week in about two months. Bitcoin slipped.

These are some of the main moves in financial markets:

Stocks

Futures on the S&P 500 Index climbed 0.1% as of 6:37 a.m. New York time.The Stoxx Europe 600 Index jumped 0.5%.The MSCI Asia Pacific Index increased 0.3%.The MSCI Emerging Market Index advanced 0.5%.

Currencies

The Bloomberg Dollar Spot Index sank 0.1%.The euro jumped 0.1% to $1.1984.The British pound was unchanged at $1.3787.The onshore yuan was little changed at 6.521 per dollar.The Japanese yen was little changed at 108.73 per dollar.

Bonds

The yield on 10-year Treasuries declined one basis point to 1.57%.The yield on two-year Treasuries climbed less than one basis point to 0.16%.Germany’s 10-year yield advanced one basis point to -0.28%.Britain’s 10-year yield jumped two basis points to 0.758%.Japan’s 10-year yield increased less than one basis point to 0.093%.

Commodities

West Texas Intermediate crude was little changed at $63.49 a barrel.Brent crude increased 0.1% to $67.01 a barrel.Gold strengthened 0.6% to $1,775.27 an ounce.

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