European Stocks Rise With Earnings as Bonds Steady: Markets Wrap


(Bloomberg) — European stocks rose, supported by strong results from BP Plc, while global bond markets stabilized after the biggest two-day selloff in months.

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BP rose 6% as the oil major announced plans to buy back $3.5 billion worth of shares in the first half. UBS Group SA fell after results disappointed analysts. U.S. stock futures rose. Ten-year Treasuries held steady at 4.14% after yields rose about 14 basis points in the previous session. The dollar fell for the first day in three.

Some of the biggest market moves Tuesday took place in Asia, where Chinese stocks soared on speculation that authorities are considering stronger efforts to end the rout. Regulators plan to brief President Xi Jinping on the market as early as Tuesday. The Hang Seng China Enterprises Index jumped nearly 5%.

The Chinese market is “looking for clearer signals on economic recovery,” Marcella Chow, global markets strategist for JPMorgan Asset Management, said on Bloomberg Television. “Expectations remain quite low: markets and investors are still struggling with the weakness of the economic recovery. »

In Europe, the benchmark Stoxx 600 index rose 0.5%. S&P 500 futures added 0.1%.

The selloff in Treasuries Monday came after the Institute for Supply Management's services gauge rose to its highest level in four months as prices recovered. The news shook trading as investors were already digesting the cautious opinions of some Fed speakers, including Jerome Powell.

The “double” prevented market participants from making further gains, according to Jose Torres of Interactive Brokers. Marko Kolanovic, a strategist at JPMorgan Chase & Co., said that “barring a significant shock, we believe this year's easing will prove more muted than markets have anticipated.”

In the commodities sector, gold was stable at $2,026 per ounce. West Texas Intermediate climbed 0.4%.

Company strengths:

  • UBS posted a net loss of $279 million for the three months ended December, slightly worse than analysts estimated. The bank said it would resume share buybacks this year, pledging to return up to $1 billion to shareholders in the second half.

  • BP Plc has accelerated its share buybacks as its new boss seeks to woo investors while sticking to the company's clean energy strategy. After fourth-quarter profit beat estimates, the London-based oil and gas giant said it would repurchase $1.75 billion in shares each quarter in the first half, up from $1.5 billion during of the previous three months.

  • Infineon Technologies AG expects lower-than-expected revenue this year as the German chipmaker is hit by a broader decline in demand for semiconductors from industrial customers.

Key events this week:

  • Eurozone retail sales, Tuesday

  • Factory orders in Germany, Tuesday

  • Bank of Canada Governor Tiff Macklem speaks Tuesday

  • Fed's Loretta Mester and Patrick Harker speak Tuesday

  • German industrial production, Wednesday

  • Walt Disney results, Wednesday

  • Fed's Adriana Kugler and Tom Barkin speak Wednesday

  • China PPI, CPI, Thursday

  • US wholesale stocks and first jobless claims, Thursday

  • Treasury Secretary Janet Yellen speaks Thursday at a Senate Banking Committee hearing on the Financial Stability Oversight Council's annual report.

  • Pharmaceutical industry CEOs speak Thursday at a Senate panel on prescription drug prices.

  • ECB Chief Economist Philip Lane speaks on Thursday

  • The ECB publishes its economic bulletin on Thursday

  • US CPI revisions, Friday

  • German CPI, Friday

  • President Joe Biden receives German Chancellor Olaf Scholz at the White House on Friday.

Some of the main market movements:

Actions

  • The Stoxx Europe 600 rose 0.2% at 8:45 a.m. London time

  • S&P 500 futures rose 0.1%

  • Nasdaq 100 futures rose 0.3%

  • Dow Jones Industrial Average futures little changed

  • The MSCI Asia-Pacific index rose 0.7%

  • The MSCI Emerging Markets Index rose 1.3%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.1%

  • The euro was little changed at $1.0751

  • The Japanese yen was little changed at 148.60 per dollar

  • The offshore yuan rose 0.2% to 7.2052 per dollar.

  • The British pound rose 0.2% to $1.2558

Cryptocurrencies

  • Bitcoin rose 1.6% to $43,000.97

  • Ether rose 2% to $2,331.1

Obligations

  • The 10-year Treasury yield fell one basis point to 4.14%

  • The German 10-year yield changed little at 2.31%

  • The UK 10-year yield was little changed at 4.01%

Raw materials

This story was produced with the help of Bloomberg Automation.

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