(Bloomberg) — Stocks in Europe edged higher and U.S. equity futures were steady on Tuesday as traders evaluated the resilience of the global recovery to a record spike in coronavirus cases.
The Stoxx Europe 600 index posted a modest gain at the open, with travel & leisure shares leading the advance along with car makers. Contracts on the S&P 500 and Nasdaq 100 fluctuated following the S&P 500’s 69th record close this year. The U.S. 10-year Treasury yield and the dollar were little changed. Oil held near a one-month high, while iron ore futures extended a decline after data showed softening Chinese steel output.
Most Asian stocks rose, but a Hong Kong technology gauge missed out as tightening oversight of overseas share sales by Chinese authorities provided a reminder of Beijing’s regulatory zeal. Volumes were lower than average in some markets due to the holiday season.
A tidal wave of omicron infections took global Covid-19 cases to a daily all-time high on Monday. The surge has disrupted global reopening and could squeeze hospitals. At the same time, investors are taking comfort from studies suggesting omicron, while highly contagious, causes less severe illness.
Global shares are on course for a third year of double-digit returns, powered by the U.S. surge. The climb has overcome coronavirus waves and a shift by some key central banks toward tighter monetary policy to fight high inflation. Concerns remain that those variables could spur heightened volatility.
“The remedies that we put in place to counter the Covid recessions, they were so substantial, we had massive stimulus,” Sandip Bhagat, chief investment officer of Whittier Trust, said on Bloomberg Television. “We’ll be left with a legacy of those policy responses well into the future” and stocks can continue advancing, he said.
In China, the latest escalation in Beijing’s wider regulatory clampdown on private industry casts more doubt over the prospects for overseas initial public offerings, which had proceeded virtually unchecked for two decades.
Meanwhile, the People’s Bank of China — which on the weekend vowed more economic support — boosted a short-term liquidity injection.
In cryptocurrencies, Bitcoin gave up a recent advance to slide below the $50,000 level, suggesting investors in the riskiest corners of global markets are becoming more circumspect.
What to watch this week:
- U.S. initial jobless claims, Thursday
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 rose 0.3% as of 8:16 a.m. London time
- Futures on the S&P 500 were little changed
- Futures on the Nasdaq 100 were little changed
- Futures on the Dow Jones Industrial Average were unchanged
- The MSCI Asia Pacific Index rose 0.8%
- The MSCI Emerging Markets Index rose 0.5%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $1.1323
- The Japanese yen was little changed at 114.86 per dollar
- The offshore yuan was little changed at 6.3745 per dollar
- The British pound was little changed at $1.3435
Bonds
- The yield on 10-year Treasuries was little changed at 1.47%
- Germany’s 10-year yield advanced one basis point to -0.23%
Commodities
- Brent crude fell 0.1% to $78.51 a barrel
- Spot gold rose 0.1% to $1,814.66 an ounce
More stories like this are available on bloomberg.com
©2021 Bloomberg L.P.
