Fight over futures amid mixed gains; Bond gains: market envelope

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(Bloomberg) – US futures have fluctuated and stocks in Europe fell to near-record highs on Wednesday amid mixed earnings reports, lower commodity prices and new concerns about economic growth . Obligations acquired.

S&P 500 contracts were little changed and Nasdaq 100 futures fell slightly in response to big tech earnings released later in Tuesday’s US session. Texas Instruments Inc. fell 4% in pre-market trading after sales forecasts fell short of expectations. Microsoft Corp. and Twitter Inc. gained nearly 2% after optimistic reports.

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Mining stocks led the Stoxx Europe 600 index down as commodity prices, especially aluminum and iron ore, fell along with crude oil. Germany’s DAX underperformed after Europe’s largest economy cut its growth forecast for 2021, citing the lingering effects of the pandemic and a squeeze in supply. Bund yields fell along with those of other European bonds.

Some of the top results and business news from Wednesday:

Deutsche Bank AG fell more than 3% after disappointing earnings, while Banco Santander SA fell despite bullish prospects. Heineken NV fell after reporting a drop in demand for beer. Global supply is catching up with demand. Dutch semiconductor equipment maker ASM International NV rose after revenue forecasts exceeded analysts’ estimates. Puma SE gained after raising its profit forecast for the Temenos AG jumped 16% after Bloomberg announced that EQT AB was considering an acquisition of the Swiss banking software specialist.

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Shares fell in Japan and Chinese tech stocks slipped amid concerns over closer scrutiny by Washington after the United States banned the U.S. operations of China Telecom. Treasury yields declined slightly and the dollar remained stable.

Investors are counting on earnings to support stock prices, and the reporting season so far has been broadly strong. But concerns remain that over time rising raw material and wage costs and supply chain grunts could squeeze margins and weigh on the recovery of the global economy.

“While some significant profit lapses have clouded the picture, the reality is that overall the reporting season has been very strong so far,” said Max Kettner, multi-asset strategist at HCBC Holdings Plc. “Everyone, literally everyone, in the market right now is worried about supply chain constraints, higher input costs, etc., so the headwinds on that side are building up. now reflect very well in short-term earnings expectations. “

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The debt crisis in the Chinese real estate sector continues to weigh on the market: the authorities have asked billionaire Hui Ka Yan to use his personal fortune to alleviate the woes of the China Evergrande group. Meanwhile, a leading Chinese regulator has called on companies to make “active preparations” to deal with payments on offshore bonds.

Meanwhile, the energy crisis continues to impact the global economy. US power station coal inventories have fallen to their lowest in at least 24 years. WTI crude oil slipped below $ 84 a barrel.

Gold fell back below $ 1,800 an ounce and Bitcoin plunged below $ 59,000. On the virus front, a Food and Drug Administration panel has supported Pfizer Inc. and BioNTech SE vaccines for young children.

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Here are some events to watch this week:

Profits: Amazon, Apple, Samsung Electronics, China Vanke, PetroChina, Ping An Insurance Group Australia CPI, WednesdayU.S. Wholesale stocks, US durable goods, Wednesday Bank of Japan monetary policy decision briefing, Thursday ECB rate decision, President Christine Lagarde briefing, Thursday GDP, first jobless claims, Thursday Joint meeting of G-20 finance and health ministers ahead of weekend leaders’ summit, Friday

For more market analysis, read our MLIV blog.

Some of the main movements in the markets:

Actions

Futures on the S&P 500 were little changed at 6:29 a.m. New York time. Nasdaq 100 futures fell 0.1% Dow Jones Industrial Average futures were little changed.

Currencies

Bloomberg Dollar Spot Index was little changed Euro was little changed at $ 1.1589 British Pound fell 0.3% to $ 1.3725 Japanese Yen rose 0.4% to 113.74 for a dollar

Obligations

The 10-year Treasury bill yield fell one basis point to 1.59% Germany’s 10-year yield fell four basis points to -0.16% The 10-year yield of Britain fell four basis points to 1.07%

Merchandise

West Texas Intermediate crude fell 1.2% to $ 83.60 per barrel Gold futures fell 0.3% to $ 1,787.70 per ounce

© 2021 Bloomberg LP

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