Stocks, U.S. Futures Climb Amid Earnings Optimism: Markets Wrap – swissinfo.ch

This content was published on October 15, 2021 – 02:36

(Bloomberg) — Asian stocks pushed higher Friday after a rally on Wall Street spurred by robust corporate earnings and as China loosened curbs on home loans at some of its largest banks.

Japanese equities outperformed amid a dip in the yen, Hong Kong gained and Chinese stocks were steady. U.S. futures climbed following the S&P 500’s best day since March. Results from major U.S. banks beat estimates, U.S. producer prices advanced at the slowest pace this year and initial jobless claims fell, boosting sentiment.

China is easing restrictions on home loans amid growing concern about contagion from the debt crisis at China Evergrande Group. The nation’s central bank added enough medium-term funds to keep financial-system liquidity at existing levels.

The U.S. 10-year Treasury yield advanced and the dollar was little changed. Bitcoin extended a climb with the Securities and Exchange Commission poised to allow the first U.S. Bitcoin futures exchange-traded fund to begin trading, according to people familiar with the matter.

Solid company earnings in the reporting season so far helped to temper fears that inflation stoked by surging energy prices and supply-chain snarls will hurt growth. Corporate profits have been a boon for the equity market throughout the pandemic. At the same time, the wider debate about whether a stagflation-like backdrop looms remains unresolved.

“We’re likely going to continue to see this elevated inflation and probably well into 2022,” Nicole Webb, senior vice president at Wealth Enhancement Group, said on Bloomberg Television. She expects the Fed to begin tapering stimulus next month and an earlier discussion of rate hikes than previously expected.

In the latest Fed comments, St. Louis President James Bullard said there’s a 50% chance that price pressures will persist. Corporate leaders also see a similar risk: Bank of America Corp. Chief Executive Officer Brian Moynihan joined the likes of Morgan Stanley CEO James Gorman and Goldman Sachs Group Inc.’s John Waldron in predicting that inflation will stick around.

Elsewhere, crude oil headed for an eighth weekly gain, the longest such run since 2015. Base metals have soared, with European smelters the latest casualties in the global energy crisis. A gauge of six industrial metals hit a record high on the London Metal Exchange.

Here are a few events to watch this week:

  • Goldman Sachs Group Inc. reports earnings on Friday
  • U.S. business inventories, University of Michigan consumer sentiment, retail sales on Friday

For more market analysis, read our MLIV blog.

Some of the main moves in markets:

Stocks

  • S&P 500 futures rose 0.3% as of 11:31 a.m. in Tokyo. The S&P 500 gained 1.7%
  • Nasdaq 100 futures climbed 0.3%. The Nasdaq 100 rose 1.9%
  • Japan’s Topix index rose 1.3%
  • South Korea’s Kospi increased 0.9%
  • Australia’s S&P ASX/200 added 0.5%
  • China’s Shanghai Composite Index added 0.1%
  • Hong Kong’s Hang Seng index increased 1%
  • Euro Stoxx 50 futures rose 0.4%

Currencies

  • The Bloomberg Dollar Spot Index was little changed
  • The euro was at $1.1605
  • The Japanese yen was at 113.85 per dollar, down 0.2%
  • The offshore yuan was at 6.4324 per dollar

Bonds

  • The yield on 10-year Treasuries rose about one basis point to 1.52%
  • Australia’s 10-year bond yield was at 1.64%

Commodities

  • West Texas Intermediate crude rose 0.5% to $81.73 a barrel
  • Gold was at $1,794.69 an ounce

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