(Bloomberg) – European equities rose with US futures on Wednesday, with cyclical stocks outperforming and the rebound in the technology sector appearing to be weakening.
The Stoxx Europe 600 Index fluctuated between losses and gains, as automakers, energy companies and banks led the indicator. The exception was mining stocks, which hit a three-week low amid falling iron ore prices. Just Eat Takeaway.com NV won after announcing that it expects faster growth in order growth in 2021 compared to last year.
In the US, Dow Jones Industrial Average and Russell 2000 futures outperformed, while Nasdaq 100 contracts deviated after the underlying benchmark advanced nearly 4% amid an increase in growth stocks. Treasury yields have stabilized below their recent peaks, as the first in a series of auctions in the United States took place without affecting markets.
In Asia, China’s CSI 300 indicator rose modestly after a fall on Tuesday that avoided the state’s efforts to slow the pace of losses.
While Tuesday’s retraction in Treasury yields spurred a race for home winners, the rotation from growth stocks to value stocks looked set to resume on Wednesday. Congress is about to send the $ 1.9 trillion Covid-19 aid plan to President Joe Biden for his signature, while vaccines are increasing amid more signs of economic recovery. The next consumer price data in the U.S. is also expected to show a slightly faster annual increase.
The upward trend in bond yields is consistent with expectations of economic growth, said Lauren Goodwin, portfolio strategist at New York Life Investments. This scenario still favors cyclicals over defensive assets and “supports stocks over bonds and a weaker US dollar,” she said.
Elsewhere, oil has remained stable with the appreciation of the dollar. The Australian dollar fell after the central bank president suggested that markets may be moving ahead in setting the price for an increase in interest rates in the coming years.
Here are some important events to note:
The EIA’s crude oil inventory report is due to be released on Wednesday. The US February consumer price index will provide a more recent analysis of price pressures on Wednesday. President Christine Lagarde is due to do a briefing on Thursday.
Here are the main movements in the markets:
Stocks
Futures on the S&P 500 index suffered little change at 9:04 am London time. The Stoxx Europe 600 index increased by 0.1%. The MSCI Asia Pacific index gained 0.3%. The MSCI emerging markets index rose 0.7%.
Coins
The Bloomberg Dollar Spot Index jumped 0.1%. The euro changed little by $ 1.1898. The British pound has barely changed at $ 1.3889. The onshore yuan strengthened 0.1% to 6.505 per dollar. The Japanese yen weakened 0.2% to 108.71 per dollar.
Titles
Yield on 10-year Treasury bonds increased two basis points to 1.55%. Yield on two-year Treasury bills increased less than a basis point to 0.16%. Germany’s 10-year income gained less than a base point to -0.30%. the one-year yield remained unchanged at 0.727%. Japan’s 10-year income gained less than a base point to 0.128%.
Commodities
West Texas Intermediate oil has barely changed, at $ 64 a barrel. Crude oil fell 0.2% to $ 67.41 a barrel. Gold weakened 0.1% to $ 1,713.56 an ounce.
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