(Bloomberg) — U.S. equity-index futures rose along with European stocks Thursday in the wake of another Wall Street all-time high on light volumes in the final days of the year. Treasury yields trimmed an advance.
Contracts on the S&P 500 and Nasdaq 100 edged higher after the S&P 500 hit its 70th record close of the year on Wednesday. Biogen Inc. shares fell more than 6% in pre-market trading after Samsung Group denied a Korean media report that the U.S. drugmaker was in talks to sell itself to the company. The Stoxx Europe 600 gauge climbed about 0.3%, with technology shares bouncing back to pare some of Wednesday’s drop.
The 10-year Treasury yield pared an advance to drop back toward its 50-day moving average, while yields across most of Europe also dipped after Wednesday global sovereign-bond retreat. A dollar gauge was flat. Iron ore halted a three-day decline and resurfaced above $120 a ton on potential support from restocking by China’s steel mills. Crude oil slipped.
As the year draws to a close, investors are contemplating the implications of the fast-spreading omicron coronavirus variant, decreasing stimulus and elevated inflation stoked by supply-chain bottlenecks. Key questions include whether Treasury yields will push higher and how much impetus is left in the equity bull market. Initial unemployment claims unexpectedly fell last week, illustrating still-solid labor demand despite the latest virus wave.
“Despite global surges in Covid cases, the markets are reflecting the new reality that Covid is here to stay albeit more on our terms than its,” Kevin Philip, managing director at Bel Air Investment Advisors, said in an email. Next year, “we are facing less of a Covid-influenced world, and a return toward normalcy,” he said.
The number of Covid-19 cases soared 32% to a record 1.73 million on Wednesday, marking the third day in a row with more than a million new infections worldwide. Cathay Pacific Airways plans to scrap Hong Kong flights as the city tightens quarantine rules for aircrew.
Still, countries including Italy and Australia are dialing back their Covid curbs in an effort to keep essential services running, support their economies and allow people to connect. More evidence is emerging that omicron may be less dangerous, particularly in vaccinated people, as virus deaths in the U.S. declined.
China’s CSI 300 index climbed on expectations of more steps to bolster economic growth amid an extension of some personal income-tax breaks and calls for policy easing. In Hong Kong, artificial intelligence giant SenseTime Group Inc. jumped on its first day of trading. MSCI Inc.’s overall Asia-Pacific index edged lower.
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 rose 0.2% as of 8:41 a.m. New York time
- Futures on the Nasdaq 100 rose 0.1%
- Futures on the Dow Jones Industrial Average rose 0.2%
- The Stoxx Europe 600 rose 0.3%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.1% to $1.1333
- The British pound was little changed at $1.3501
- The Japanese yen fell 0.2% to 115.14 per dollar
Bonds
- The yield on 10-year Treasuries declined two basis points to 1.53%
- Germany’s 10-year yield declined one basis point to -0.19%
- Britain’s 10-year yield declined three basis points to 0.99%
Commodities
- West Texas Intermediate crude fell 0.2% to $76.43 a barrel
- Gold futures fell 0.3% to $1,800.70 an ounce
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