(Bloomberg) — Stocks advanced and Treasuries edged higher as global markets steadied after the turbulence earlier in the week. Asian currencies rallied as authorities pushed back against a stronger dollar.
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Europe’s Stoxx 600 index climbed 0.3% while US futures pointed to the S&P 500’s first gains in five days at the Wall Street open. Taiwan Semiconductor Manufacturing Co. reported its first profit rise in a year, after strong AI demand revived growth at the world’s biggest contract chipmaker. An index of the dollar fell for a second day and yields on 10-year Treasuries dipped 2 basis points to 4.57%.
While investors are unwinding some of the declines seen so far in April, the case for higher US yields and a stronger dollar remains after robust US economic data and sticky inflation forced traders to cool their bets on interest rate cuts by the Federal Reserve.
Attention Thursday will turn to earnings from companies including Netflix Inc, Blackstone Inc. and L’Oreal SA as well as initial US jobless data and speakers from a raft of central banks.
“Equities have strong momentum — growth is quite strong so earnings are likely to be supported,” said Salman Ahmed, Global Head of Macro at Fidelity International. At the same time, valuations are high and traders must “balance strong growth with the fact that the fed, which was seen as friendly, is now being forced to become unfriendly,” he said.
In Asia, all major regional stock markets including China, Japan, Australia and South Korea rose. A global stocks gauge ticked higher, on track for its first advance in a week.
The won led the climb in regional currencies, while the yen was steady following a joint statement from US Treasury Secretary Janet Yellen alongside the finance ministers of Japan and South Korea that noted “serious concerns” about the depreciation of the two Asian currencies. A global gauge of emerging-market currencies gained for a second day, suggesting some stability after hitting a 2024 low earlier this week.
“The US has effectively given the nod on intervention,” said Keiichi Iguchi, a senior strategist at Resona Holdings Inc. in Tokyo. “This has increased speculation that a coordinated intervention is a possibility.”
Elsewhere, oil held onto most of Wednesday’s 3% decline, weighed by weaker Chinese industrial data and a swelling in US crude inventories, while gold edged higher.
Key events this week:
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US Conf. Board leading index, existing home sales, initial jobless claims, Thursday
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Fed Governor Michelle Bowman speaks, Thursday
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New York Fed President John Williams speaks, Thursday
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Atlanta Fed President Raphael Bostic speaks, Thursday
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BOE Deputy Governor Dave Ramsden and ECB Governing Council member Joachim Nagel speak, Friday
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Chicago Fed President Austan Goolsbee speaks, Friday
Some of the main moves in markets:
Stocks
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The Stoxx Europe 600 rose 0.3% as of 8:35 a.m. London time
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S&P 500 futures rose 0.3%
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Nasdaq 100 futures rose 0.5%
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Futures on the Dow Jones Industrial Average rose 0.2%
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The MSCI Asia Pacific Index rose 0.9%
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The MSCI Emerging Markets Index rose 0.9%
Currencies
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The Bloomberg Dollar Spot Index fell 0.1%
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The euro was little changed at $1.0680
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The Japanese yen was little changed at 154.25 per dollar
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The offshore yuan was little changed at 7.2501 per dollar
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The British pound rose 0.1% to $1.2468
Cryptocurrencies
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Bitcoin rose 0.5% to $61,139.51
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Ether was little changed at $2,973.65
Bonds
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The yield on 10-year Treasuries was little changed at 4.58%
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Germany’s 10-year yield declined two basis points to 2.45%
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Britain’s 10-year yield declined two basis points to 4.24%
Commodities
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Brent crude was little changed
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Spot gold rose 0.6% to $2,376.25 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Matthew Burgess and Richard Henderson.
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