Stocks, U.S. Futures Turn Higher; Treasuries Gain: Markets Wrap

(Bloomberg) — European equities and U.S. futures erased declines on Thursday as investors shrugged off accelerating coronavirus infections in some countries. Treasuries trimmed their advance.

The Stoxx Europe 600 reversed its earlier decline, as tech and retailer shares turned higher. Contracts on the main U.S. equity benchmarks came off their session lows to notch modest gains. Asian stocks mostly fell amid a cluster of infections in Beijing that emerged after a lull of nearly two months. The pound weakened ahead of a Bank of England decision; policy makers are expected to add to economic stimulus. Crude oil prices erased earlier losses.

The picture for global markets remains complex in the wake of an epic stock rally from March lows. As countries emerge from lockdowns, fears of a second wave are increasing, with Texas reporting an 11% surge in hospitalizations and China battling its worst outbreak since Wuhan. Investors are balancing that with positive economic news, as well as a flood of promised stimulus measures. Politics is back in the picture too, after newspapers published summaries of a widely anticipated book critical of President Donald Trump.

The yuan ticked up and Chinese shares pared losses after China’s central bank governor said he wants the flow of credit in the economy to increase to at least 30 trillion yuan ($4.2 trillion) this year.

Elsewhere, Australian equities underperformed and the country’s dollar fell after the country reported a much bigger decline in employment than forecast for May.

These are some key events coming up:

A policy decision from the Bank of England is due on Thursday.

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 Index advanced 0.3% as of 9:36 a.m. London time.The Stoxx Europe 600 Index gained 0.3%.The MSCI Asia Pacific Index was little changed.The MSCI Emerging Market Index increased 0.3%.

Currencies

The Bloomberg Dollar Spot Index sank 0.2%.The euro gained 0.1% to $1.1257.The British pound fell 0.2% to $1.2535.The onshore yuan strengthened 0.1% to 7.078 per dollar.The Japanese yen weakened 0.1% to 107.07 per dollar.

Bonds

The yield on 10-year Treasuries sank one basis point to 0.72%.The yield on two-year Treasuries climbed less than one basis point to 0.20%.Germany’s 10-year yield gained one basis point to -0.39%.Britain’s 10-year yield fell one basis point to 0.181%.Japan’s 10-year yield dipped less than one basis point to 0.019%.

Commodities

West Texas Intermediate crude gained 0.3% to $38.06 a barrel.Brent crude gained 0.6% to $40.97 a barrel.Gold strengthened 0.1% to $1,729.21 an ounce.

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