U.S. futures recovers some losses after weekly jobless claims data shows that the labor market is improving. On the other hand, European stocks tumbled down due to disappointing earnings.
Futures on the S&P 500 Index changed insignificantly, while Nasdaq 100 Index futures edged up by 0.1%. In Europe, the Stoxx 600 Index plummeted down by 0.6%, but the MSCI Asia Pacific Index increased by 0.2%.
Tech-hardware stocks decreased after reports showed that Western Digital Corp.’s outlook is weaker than expected. Pfizer Inc. and Bristol-Myers Squibb Co. soared after winning a court ruling that upheld patents on their blockbuster blood-thinner Eliquis. Meanwhile, mining giant Glencore Plc lost significant amounts in Europe after scrapping its dividend.
Turkey’s lira plunged to its lowest level against the U.S. dollar as interventions by state banks failed to reassure markets. Goldman Sachs Group cautioned that a successful Covid-19 vaccine might unsettle markets by sparking a sell-off in bonds. Meanwhile, investors awaited news on the latest American stimulus package. Gold rose above $2,050 an ounce.
Pressure grows on Republicans and Democrats to overcome differences over a new U.S. virus relief package. Traders pushed a gauge of global stocks this week to within a whisker of recouping this year’s losses. Secretary of State Mike Pompeo requested American firms to bar Chinese applications from their app stores. It’s the latest attempt from the Trump administration to counter China on multiple fronts.
What do analysts say?
Kerry Craig, the strategist at JPMorgan Asset Management, says that there are some risks of the market relying too much on positive news around the fiscal stimulus and an earnings season. Those earnings weren’t that great in the first place. There’s a case for markets, particularly in the United States, taking a pause from here on out instead of continuing this rally, given how strong it has been.
The British Pound jumped against the Euro after the Bank of England said it wouldn’t tighten policy for a while, despite signals that the U.K. economy’s rebound is faster than expected.