(Bloomberg) – U.S. futures rose along with stocks as investors weighed earnings reports and awaited data on U.S. unemployment claims.
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Contracts on US gauges signaled a rebound in Wednesday’s equity losses. Tesla Inc. climbed 3.6% in premarket trading, with shares expected to double from a January low. Walt Disney Co. surged on better-than-expected results and a restructuring plan that includes job cuts and cost savings.
Better than expected results from companies such as Siemens AG and AstraZeneca Plc supported European equities. Credit Suisse Group AG slipped after warning it expects a substantial loss this year. Chinese and Hong Kong equities inflated the Asian equities gauge.
The yield on 10-year Treasury bills fell and a dollar index weakened.
Investors will closely watch U.S. data, including Thursday’s Initial Jobless Claims report, for clues on policy after a series of Federal Reserve officials reiterated that interest rates will have to continue. to rise to curb inflation, which will have an effect on market optimism. Earnings are also in focus, with exceptional share buybacks being one of the highlights of the season.
“Investors are shaking off another case of jitters over the magnitude of U.S. interest rates as a string of better-than-expected corporate results came after the bell,” analyst Susannah Streeter said. Head of Investments and Markets at Hargreaves Lansdown. .
After this week’s hawkish refrain, fed funds futures markets are pricing in higher rates, with some options traders betting that the US policy benchmark will hit 6%.
“I don’t think the Fed will cut this year,” Jun Bei Liu, portfolio manager at Tribeca Investment Partners, told Bloomberg Television. “The Fed was behind on its interest rate hike and it will certainly be very slow to cut the interest rate.”
Among other notable movers, Robinhood Markets Inc. rose after falling profits, while toymaker Mattel Inc. fell as its outlook disappointed.
Shares of Adani Enterprises Ltd. fell, triggering a two-day rally after MSCI Inc. said it was reviewing the number of Adani Group-related shares that were freely tradable on public markets.
Standard Chartered Plc climbed after people familiar with the matter said First Abu Dhabi Bank PJSC was pursuing a potential bid for the company.
Elsewhere, oil stabilized after rising around 7% in the previous three sessions.
The key events:
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First unemployment claims in the United States, Thursday
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ECB President Christine Lagarde attends EU leaders’ summit on Thursday
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Bank of England Governor Andrew Bailey appears before the Treasury Committee on Thursday
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American University of Michigan Consumer Sentiment Friday
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The Fed’s Christopher Waller and Patrick Harker speak on Friday
Some of the major movements in the markets:
Shares
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S&P 500 futures rose 0.8% at 7:06 a.m. PT
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Nasdaq 100 futures rose 1.1%
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Dow Jones Industrial Average futures rose 0.6%
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The Stoxx Europe 600 is up 1%
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The MSCI World index rose 0.3%
Currencies
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The Bloomberg Dollar Spot Index fell 0.4%
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The euro rose 0.4% to $1.0759
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The British pound rose 0.7% to $1.2152
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The Japanese yen rose 0.4% to 130.93 per dollar
Cryptocurrencies
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Bitcoin fell 1.2% to $22,693.75
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Ether fell 1.1% to $1,634.74
Obligations
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The yield on 10-year Treasury bills fell two basis points to 3.59%
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Germany’s 10-year yield fell nine basis points to 2.27%
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The UK 10-year yield fell eight basis points to 3.23%
Goods
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West Texas Intermediate crude rose 0.2% to $78.59 a barrel
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Gold futures rose 0.2% to $1,893.80 an ounce
This story was produced with assistance from Bloomberg Automation.
–With the help of Tassia Sipahutar, Richard Henderson and Michael Msika.
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