(Bloomberg) -- U.S. index futures rose, with equities at records, amid speculation central bankers will add to stimulus to support the global economy.
Lenders rose in premarket trading as investors awaited earnings reports from JPMorgan Chase & Co. and BlackRock Inc., among the first financial firms in the S&P 500 to release results. Bank of America Corp. and Citigroup Inc. gained at least 1 percent.
Contracts on the S&P 500 expiring in September added 1 percent to 2,166.25 at 11:01 a.m. in London. The benchmark closed little changed yesterday, eking out an all-time high for a third session. Dow Jones Industrial Average futures increased 176 points, also 1 percent, to 18,464 today.
Global equities climbed Thursday as speculation grew that Prime Minister Shinzo Abe is contemplating so-called helicopter money, which involves the central bank directly funding government spending, and that the Bank of England will announce a rate cut.
“There’s hope and anticipation of central bank support globally and earnings are improving,” said John Plassard, a senior equity-sales trader at Mirabaud Securities in Geneva, which oversees 34 billion Swiss francs ($35 billion). “The consensus now is no Fed hike and that keeps the dollar from going higher, which in turn helps equities. Earnings so far have been good and now the market is looking at JP Morgan which could trigger a better outlook for the banking sector.”
U.S. share prices added almost $2 trillion since June 27, an amount that ranks among the biggest increases in equity value, as easing concern about economic growth and optimism over earnings combines with speculation the Federal Reserve will hold off raising rates. The S&P 500 climbed in nine of the last 11 days, erasing a 5.3 percent plunge following the U.K. vote to exit the European Union.
Odds of a 2016 Fed rate increase all but vanished after minutes of the central bank’s June meeting signaled policy makers saw less need to tighten. While wagers crept up after better-than-estimated payrolls data, traders are still pricing in less than even odds until late 2017. A Citigroup Inc. gauge that tracks the degree to which reported numbers are exceeding economist projections has jumped to the highest level since January 2015.
Analysts are projecting a 5.7 percent earnings decline at S&P 500 firms in the second quarter, which would make it a fifth straight drop, the longest streak since 2009. Wells Fargo & Co. and Citigroup are among firms posting results tomorrow.
Among stocks moving in premarket trading, Yum! Brands Inc. advanced 3.1 percent after beating quarterly profit estimates and raising its forecast. Cypress Semiconductor Corp. rose 5.6 percent after Betaville reported, citing an unidentified person, that the company is holding out for an offer of $15 per share.
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