Daily Outlook

U.S. Futures Climb With Europe Stocks; Bonds Drop

U.S. equity futures advanced with European stocks on the first trading day of August as positive economic data countered pessimism over a resurgence of Covid-19 cases. S&P 500 Index futures extended gains, with Microsoft Corp. rising in pre-market trading as it tries to salvage a deal for the U.S. operations of TikTok. Marathon Petroleum Corp. jumped on selling its gas-station business for $21 billion. European auto and tech shares surged after the euro area’s first manufacturing expansion in one-and-a-half years.

Even after four months of global gains in equities, investors are entering August looking past the disturbing rate of coronavirus infections and scattered moves to return major cities to lockdowns. Treasuries fell, from two-year notes to 30-year bonds. A gauge of the dollar rose after its worst July in a decade.

Elsewhere, West Texas-grade oil traded around $40 a barrel as OPEC+ producers started supplying more crude to a global market where many countries are still struggling to contain the coronavirus.

Federal Reserve presidents speaking on the economy Monday: St. Louis Fed President James Bullard, Chicago Fed President Charles Evans and Richmond Fed President Tom Barkin.Australia interest rate decision due Tuesday.Reserve Bank of India and Bank of England rate decisions due Thursday.Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.July U.S. employment and jobs reports expected Friday.

Stocks

Futures on the S&P 500 Index advanced 0.6% as of 8:14 a.m. New York time.Nasdaq 100 Index futures climbed 0.9%.The Stoxx Europe 600 Index gained 1.6%.The MSCI Asia Pacific Index gained 0.1%.

Currencies

The Bloomberg Dollar Spot Index climbed 0.4%.The euro decreased 0.4% to $1.1726.The Japanese yen weakened 0.3% to 106.19 per dollar.South Africa’s rand weakened 1.3% to 17.2924 per dollar.

Bonds

The yield on 10-year Treasuries gained three basis points to 0.56%.The yield on two-year Treasuries advanced less than one basis point to 0.11%.Britain’s 10-year yield declined less than one basis point to 0.103%.Germany’s 10-year yield climbed one basis point to -0.52%.

Commodities

West Texas Intermediate crude fell 0.3% to $40.15 a barrel.Gold weakened 0.2% to $1,971.01 an ounce.Iron ore jumped 4.9% to $114.28 per metric ton.

U.S. Futures Climb With Europe Stocks; Bonds Drop: Markets Wrap, Bloomberg, Aug 3

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