European and Asian stocks edged higher with U.S. equity futures on Tuesday as the earnings season gathered pace and governments contemplated reopening their economies. Crude oil extended sharp losses after plunging on Monday.
The Stoxx Europe 600 Index nudged higher at the open. Banking giant HSBC Holdings Plc slipped after it cautioned that bad loan charges may climb to as much as $11 billion this year, the highest since the last financial crisis as the coronavirus pandemic halts economic activity around the world. S&P 500 Index contracts fluctuated before firming after the underlying gauge closed at its highest since March 10.
Shares in Japan finished slightly higher and those in Australia edged down while South Korean and Hong Kong equities climbed in a choppy Asian session. West Texas oil futures in New York slumped to below $11 a barrel. Treasuries were steady.
Investors have a lot to digest this week, with policy decisions due from central banks including the Federal Reserve and European Central Bank as well as earnings from some of the world’s biggest companies, among them Amazon.com Inc., Facebook Inc., Apple Inc., Microsoft Corp. and Samsung Electronics Co. At the same time they’re monitoring infection rates across major economies and the ongoing discussions of how to restart activity.
“What’s very important is not to get overly comfortable with the pace of the equity markets in the last few weeks,” George Toubia, chief investment director at Westpac Private Wealth, said at a briefing in Sydney. “Given the market has run up a fair bit in the last few weeks, this is an environment to be far more selective.”
On the virus front, a vaccine could be available as early as this year, according to a coalition funding nine projects. U.S. cases rose at the slowest pace this month, while states including Florida and Ohio took steps toward easing restrictions. Italy reported the lowest levels of new infections in seven weeks and prepared to begin reopening.
These are the main moves in markets:
Stocks
- The Stoxx Europe 600 Index climbed 0.1% as of 8:29 a.m. London time.
- Futures on the S&P 500 Index were little changed.
- The MSCI Asia Pacific Index gained 0.3%.
- The MSCI All-Country World Index was little changed.
Currencies
- The Bloomberg Dollar Spot Index was steady.
- The euro was little changed at $1.0830.
- The British pound was little changed at $1.2426.
- The Japanese yen strengthened 0.1% to 107.16 per dollar.
Bonds
- The yield on 10-year Treasuries declined one basis point to 0.65%.
- Germany’s 10-year yield was unchanged at -0.45%.
- Britain’s 10-year yield decreased less than one basis point to 0.299%.
- New Zealand’s 10-year yield declined 10 basis points to 0.925%.
Commodities
- West Texas Intermediate crude sank 17.1% to $10.60 a barrel.
- Brent crude dipped 5.5% to $18.90 a barrel.
- Gold weakened 0.7% to $1,702.44 an ounce.
- Iron ore decreased 0.8% to $80.64 per metric ton.
— Bloomberg