Stocks Rise on Growth Outlook With Jobs in Focus: Markets Wrap

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(Bloomberg) — U.S. index futures rose with stocks as signs of faster job creation in the world’s largest economy fueled optimism about the global recovery. Oil climbed above $60 per barrel before a meeting of OPEC and allies on extending production cuts.

Contracts on the S&P 500 Index advanced before Friday’s U.S. nonfarm payrolls data that may show the quickest pace of hiring in five months. Nasdaq 100 futures increased about 1%, while technology stocks gained in premarket trading. The Stoxx Europe 600 gauge headed for the longest streak of weekly gains this year. Longer-dated Treasury yields fell as investors weighed delivery challenges to Joe Biden’s $2.25 trillion stimulus plan.

Traders are jockeying for position before the Easter weekend after ADP’s March data showed U.S. private employers hired the most workers in six months. President Biden’s ambitious plan to rebuild U.S. infrastructure has added to the growth outlook, even though Republican opposition to the plan raises questions about how much can actually be delivered.

“There is still some room for recovery in stocks that will benefit from the economic recovery and the reopening trade,” Ania Aldrich, investment principal at Cambiar Investors LLC, said on Bloomberg TV. “There’s still a lot of growth that has to come and that’s not necessarily reflected in earnings yet.”

Microsoft Corp. climbed 1.2% in premarket New York trading as the company’s multibillion-dollar deal to build customized versions of its HoloLens goggles for the U.S. Army moved forward. Western Digital Corp. jumped 5.4% and Micron Technology Inc. increased 4.7% after a report the two companies are individually exploring a potential deal for Japan’s Kioxia Holdings Corp.

Investors remain focused on inflation risk as central banks reassert their commitment to low interest rates. Traders for now are looking past worsening virus trends, such as lockdowns in France and Canada’s Ontario province.

Read More: Navigating the Recovery Trade Is Getting a Whole Lot Trickier

A gauge of Asia-Pacific shares rose for the first time in three days, with Hong Kong leading gains, after data signaled a pick-up in regional manufacturing. The emerging-market equity benchmark rebounded from Wednesday’s losses.

Some key events to watch this week:

OPEC+ meets to discuss production levels for May on Thursday.U.S. employment report for March on Friday.Good Friday starts the Easter weekend in countries including the U.S., U.K., France, Germany, Australia and Canada.

These are some of the main moves in financial markets:

Stocks

Futures on the S&P 500 Index climbed 0.3% as of 11:02 a.m. London time.The Stoxx Europe 600 Index increased 0.5%.The MSCI Asia Pacific Index gained 0.8%.The MSCI Emerging Market Index advanced 1.4%.

Currencies

The Bloomberg Dollar Spot Index was little changed.The euro gained 0.1% to $1.1739.The British pound fell 0.1% to $1.3768.The onshore yuan weakened 0.3% to 6.574 per dollar.The Japanese yen weakened 0.1% to 110.81 per dollar.

Bonds

The yield on 10-year Treasuries fell three basis points to 1.71%.The yield on two-year Treasuries climbed less than one basis point to 0.16%.Germany’s 10-year yield dipped two basis points to -0.31%.Britain’s 10-year yield fell three basis points to 0.816%.Japan’s 10-year yield increased two basis points to 0.113%.

Commodities

West Texas Intermediate crude advanced 2.2% to $60.47 a barrel.Brent crude increased 2% to $64.01 a barrel.Gold strengthened 0.4% to $1,714.47 an ounce.

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