US equity futures ticked higher Friday, helped by a solid roster of corporate results that helped to quell fears that an inflationary surge will sink growth.
Contracts on the S&P 500 were higher in tandem with those on the Nasdaq 100. In Europe, gains were led by banks and energy firms tied to a cyclical upswing.
Brent oil futures traded near $85 a barrel amid an energy crunch that’s stoking inflationary pressures and prices for raw materials. A gauge of six industrial metals hit a record high on the London Metal Exchange.
Solid earnings in the reporting season are tempering fears that rising costs and supply-chain snarls will hit corporate balance sheets and growth. At the same time, the wider debate about whether a stagflation-like backdrop looms remains unresolved.
“We don’t sign up to the stagflation narrative that is doing the rounds,” said Hugh Gimber, global strategist at J.P. Morgan Asset Management. He’s recommending value stocks tied to economic growth. “The economy is being supported by robust consumer balance sheets, rebounding business investment and a healthy labour market.”
Meanwhile, the US 10-year Treasury yield rose but stayed near 1.5% and the dollar was steady.
Bitcoin gained about 3% to trade above $59 000 on expectations the Securities and Exchange Commission will allow the first US Bitcoin futures exchange-traded fund.
Here are a few events to watch this week:
- Goldman Sachs Group Inc. reports earnings on Friday
- US business inventories, University of Michigan consumer sentiment, retail sales on Friday
Some of the main moves in markets:
- Futures on the S&P 500 rose 0.3% as of 7:01 a.m. New York time
- Futures on the Nasdaq 100 rose 0.3%
- Futures on the Dow Jones Industrial Average rose 0.4%
- The Stoxx Europe 600 rose 0.3%
- The MSCI World index rose 0.3%
- The Bloomberg Dollar Spot Index was little changed
- The euro rose 0.1% to $1.1609
- The British pound rose 0.5% to $1.3745
- The Japanese yen fell 0.6% to 114.35 per dollar
- The yield on 10-year Treasuries advanced three basis points to 1.54%
- Germany’s 10-year yield advanced two basis points to -0.17%
- Britain’s 10-year yield advanced three basis points to 1.08%
- West Texas Intermediate crude rose 0.8% to $81.99 a barrel
- Gold futures fell 0.8% to $1 782.80 an ounce