by Tyler Durden
Thursday, Apr 08, 2021 - 07:50 AM
European stocks hit a new record highs on Thursday, buoyed by optimism in Britain over easing lockdown restrictions, while the benign outlook on US interest rates revealed in the latest FOMC Minutes where the Fed indicated it will maintain its commitment to supportive policy, helped push S&P futures to new all time highs after the cash index closed at a record on Wednesday. Treasury yields dropped, the dollar slipped and crude oil fell as the pandemic worsened in key regions just as OPEC+ prepares to add supply over the coming months.
At 7:30 a.m. EDT, Dow E-minis were flat, S&P 500 stock futures up 13.75 points or 0.34% and Nasdaq 100 E-minis were up 122 points, or 0.89%. The S&P 500 and the Dow ended a choppy session near record highs on Wednesday, while the tech-heavy Nasdaq is still more than 3% below its February all-time high.
Key Events This Week: Minutes, Services And Producer Prices zerohedge.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zerohedge.com Daily Mail and Mail on Sunday newspapers.
2/22/2021 1:34:17 PM GMT
Overview: Higher interest rates, driven by inflation expectations, is forcing an adjustment to equity markets. The S&P 500 is poised to gap lower today following slides in the Asia Pacific region and Europe. Japanese and Taiwanese indices advanced by steep losses were seen in China, Hong Kong, and India. Europe s Dow Jones Stoxx 600 is off about 0.7% in late morning turnover, among its steepest loss here in February. The US 10-year Treasury yield around 1.37%, while European yields are narrowly mixed. Despite the upgrade by S&P to AA+ from AA, New Zealand bonds, like Australian bonds, have sold off hard. Yields jumped 13 and 17 bp respectively and are now up 47 and 55 bp over the past month. The Reserve Bank of Australia was forced to defend its 3-year bond cap for the first time in three months and bought A$1 bln. The US dollar is mixed. The Antipodean currencies and sterling are firmer, while the Swiss franc and Norwegian krone lead the rest lower. Emergin
Futures Rebound From Overnight Lows As Bond Rout Slows zerohedge.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zerohedge.com Daily Mail and Mail on Sunday newspapers.
US
The main event in the US is the Fed’s policy meeting. After several months of ultra-accomodation, the Fed seems to be inundated with questions on when is the time to taper. Fed Chair Powell earlier in the month signal now is not the time to talk about exiting. The Fed will likely reiterate their support for fiscal support and remind markets of the short-term risks. Inflation signs have picked up but are not yet at a worrisome level.
Big tech has led the recent charge higher for US stocks and Wednesday after the close will likely let us know if investors are still on board. Huge earnings will come from Facebook, Apple and Tesla.