Europe Stocks Follow Asia Higher; Treasuries Drop: Markets Wrap: Bloomberg

Stocks in Europe and Asia kicked off February with gains, as investors decided the outlook for growth and corporate earnings was strong enough to quell concerns about the recent jump up in bond yields. Treasuries resumed a slide and the dollar was steady.

Amid a flurry of company results the Stoxx Europe 600 Index headed for the first advance in four days, led by banking and technology shares. The MSCI Asia Pacific Index also rose, with a surge in Japanese stocks offsetting declines in China and India. Government bonds across Europe fell, tracking 10-year Treasuries. The pound increased a third day.

Investors are weighing the path of U.S. monetary policy at a time of synchronized global growth and rising corporate profits that’s pushed equity gauges worldwide to unprecedented levels and sent benchmark bond yields to the highest in almost four years. The Federal Reserve on Wednesday acknowledged stronger growth, expressed more confidence that inflation will rise to its 2 percent target, and set the stage for a March interest-rate increase.

Elsewhere, oil edged higher and gold retreated as Bloomberg’s commodity index headed for a fourth consecutive drop. And following a miserable January Bitcoin was steady, trading at about $10,000.

Terminal users can read more in our markets blog.

Here are some important things to watch out for this week:

• U.S. employers probably added more jobs in January than a month earlier, economists forecast before the Friday report.
• Technology earnings continue with Alibaba Group Holding Ltd., Apple Inc., Alphabet Inc. and Amazon.com Inc.

These are the main moves in markets:

Stocks

• The Stoxx Europe 600 Index gained 0.5 percent as of 8:23 a.m. London time, the largest rise in almost two weeks.
• Futures on the S&P 500 Index increased 0.3 percent.
• The MSCI Asia Pacific Index advanced 0.4 percent, the largest gain in more than a week.
• The U.K.’s FTSE 100 Index advanced 0.1 percent.
• The MSCI Emerging Market Index decreased 0.2 percent.

Currencies

• The Bloomberg Dollar Spot Index advanced 0.1 percent.
• The euro rose 0.1 percent to $1.2429, the strongest in more than three years.
• The British pound jumped 0.3 percent to $1.4236, the strongest in more than a week.
• The Japanese yen declined 0.3 percent to 109.56 per dollar, the weakest in more than a week.
• South Africa’s rand declined 0.2 percent to 11.8784 per dollar.
• The MSCI Emerging Markets Currency Index fell 0.2 percent.

Bonds

• The yield on 10-year Treasuries gained four basis points to 2.74 percent, the highest in almost four years.
• Germany’s 10-year yield advanced three basis points to 0.73 percent, the highest in more than two years.
• Britain’s 10-year yield climbed four basis points to 1.548 percent, reaching the highest in 21 months on its seventh straight advance.

Commodities

• West Texas Intermediate crude advanced 0.2 percent to $64.84 a barrel.
• Gold decreased 0.4 percent to $1,339.62 an ounce.

By Adam Haigh and Samuel Potter

February 1, 2018, 7:31 PM GMT+11

— With assistance by Sophie Caronello

Source: Bloomberg