U.S. Stock Futures Up, Asia Steady as Biden Speaks: Markets Wrap

U.S. Stock Futures Up, Asia Steady as Biden Speaks: Markets Wrap
Andreea Papuc
·3 min read

(Bloomberg) -- U.S. equity futures extended gains sparked by robust earnings from technology heavyweights and Asian stocks were steady Thursday as President Joe Biden laid out a $1.8 trillion social-support plan.

S&P 500 and Nasdaq 100 contracts were in the green, with the latter outperforming after Apple Inc. crushed revenue estimates and Facebook Inc. reported gains in sales and users. Shares slipped in China and South Korea fluctuated, with Samsung Electronics Co. dipping after reporting earnings. Japan is shut for a holiday.

In his first address to Congress, President Biden is unveiling a package of tax credits and domestic priorities including child care, paid family leave and tuition-free community college that would be funded in part by the tax increases on wealthy Americans.

The dollar slid further after the Federal Reserve signaled it’s not ready to consider scaling back policy support. Treasuries rallied in U.S. hours after the central bank said it will continue with asset purchases and described inflation pressures as likely “transitory.”

Investors seem to be looking for catalysts beyond solid earnings reports to spur the bullish momentum in equities. The Fed offered no fresh cues, though the pledge to keep policy loose is helping to buoy markets. The possible boost to growth from combined monetary and fiscal stimulus has raised market expectations for both inflation and interest rates.

“You are seeing markets pricing in Fed rate hikes even though the Fed is signaling they don’t think they need to take action through 2023,” Michelle Girard, Natwest Markets chief U.S. economist and co-head of global economics, said on Bloomberg TV. “We are looking at an economy that with the help of vaccinations is gathering momentum and yet we are continuing to see on the monetary and fiscal front the amount of support is ongoing.”

Elsewhere, crude oil fluctuated after gaining on a confident demand outlook from OPEC+, despite the threat from India’s Covid-19 crisis.

Here are some key events to watch this week:

U.S. GDP Thursday is forecast to show growth strengthened in the first quarter

These are some of the main moves in markets:

Stocks

S&P 500 futures rose 0.5% as of 9:22 a.m. in Hong Kong. The benchmark index fell 0.1%Nasdaq 100 contracts rose 0.8% after the index fell 0.4%Australia’s S&P/ASX 200 Index rose 0.2%South Korea’s Kospi Index rose 0.1%Hong Kong’s Hang Seng Index climbed 0.7%Shanghai Composite Index slipped 0.2%

Currencies

The yen was at 108.51 per dollar, up 0.1%The offshore yuan traded at 6.4697 per dollarThe Bloomberg Dollar Spot Index dipped 0.1%The euro was at $1.2143, up 0.1%

Bonds

The yield on 10-year Treasuries declined one basis point to 1.61%. Cash Treasuries won’t trade until the London open.Australia’s 10-year bond yield dropped two basis points to 1.71%

Commodities

West Texas Intermediate crude rose 0.3% to $64.07 a barrelGold edged up 0.3% to $1,787.60

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©2021 Bloomberg L.P.

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