Futures Steady as Stocks Rise, Bond Rally Stalls

U.S. equity futures steadied on Friday and stocks in Europe rose in a broad-based rebound, while Treasuries halted an eight-day rally fueled by concerns about global growth amid the spread of Covid-19 variants. The Stoxx Europe 600 index advanced, with all sectors in the green, as some of the world’s biggest money managers bet on a swift comeback for the battered reflation trade. Airbus SE climbed more than 3% after saying deliveries of new jets accelerated. Contracts on the S&P 500 and Nasdaq 100 edged higher following Thursday’s selloff in the underlying gauges. The dollar was flat against a basket of major currencies.

JPMorgan Asset Management, BlackRock Inc. and Morgan Stanley Wealth Management — which together account for some $12 trillion in assets — are among money managers saying global growth is still on track, with second-quarter earnings season starting next week set to bolster confidence. The European Central bank on Thursday indicated it will tolerate an inflation overshoot, implying an even longer period of loose policy to support the recovery.

Elsewhere, MSCI Inc.’s Asia-Pacific stock gauge pared declines after reaching the lowest since mid-May. Economically sensitive sectors such as industrials sapped the index, with equities from Japan to Australia retreating. The 10-year Treasury yield remains on course for one of its biggest weekly slides since June 2020. In U.S. hours the 30-year yield broke below 1.90% for the first time since February. Meanwhile, tension between the U.S. and China continues to bubble. Washington will add at least 10 Chinese entities to its economic blacklist as early as Friday over alleged human rights abuses and high-tech surveillance in Xinjiang, according to a report.

Oil headed for a weekly loss after being whipsawed by the OPEC+ dispute. Bitcoin is again in the lower part of a trading range, emblematic of a reduced ardor for speculative investments like cryptocurrencies and meme stocks.

Stocks

Futures on the S&P 500 rose 0.3% as of 9:34 a.m. London timeFutures on the Nasdaq 100 rose 0.1%Futures on the Dow Jones Industrial Average rose 0.4%The Stoxx Europe 600 rose 0.9%The MSCI World index was little changed

Currencies

The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1841The British pound was little changed at $1.3788The Japanese yen fell 0.3% to 110.04 per dollar

Bonds

The yield on 10-year Treasuries advanced four basis points to 1.33%Germany’s 10-year yield was little changed at -0.31%Britain’s 10-year yield advanced two basis points to 0.63%

Commodities

West Texas Intermediate crude rose 0.9% to $73.63 a barrelGold futures rose 0.1% to $1,802.50 an ounce

Futures Steady as Stocks Rise, Bond Rally Stalls: Markets Wrap, Bloomberg, Jul 9