Stocks Pause as S&P 500 Eyes Third Week of 3% Gain: Markets Wrap
(Bloomberg) — An extraordinary rebound in global equities is slowing as investors hold back from further big bets ahead of the weekend while waiting to see whether Iran and the US can extend their truce.
S&P 500 futures rose 0.1% after the benchmark notched back-to-back record highs. The index is on course for a third week of gains of more than 3%, a stunning reversal following mounting signs that the US and Iran have been looking to deescalate their conflict that has roiled energy markets. Optimism over artificial intelligence and robust earnings have added to the momentum.
Brent dropped 1.2% toward $98 a barrel after President Donald Trump claimed that Iran has made key concessions in negotiations with the US. The dollar held near a February low. Global bonds were mixed, with the 10-year Treasury yield one basis point lower at 4.30%.
“Now that the dust appears to be settling on events in the Middle East, market attention will once again focus back on the fundamentals, in particular earnings given that the season has just started,” said Daniel Murray, deputy chief investment officer at EFG Asset Management. “Earnings expectations are buoyant, consistent with solid underlying macro trends.”
For all the optimism, the key transit route for about a fifth of global crude shipments remains all but shut under US and Iranian blockades, with no clear indication of when flows will resume. Some Gulf Arab and European leaders said that a US-Iran peace deal would take about six months to be agreed.
“As we are heading closer and closer to May, the situation becomes serious,” said Andrea Gabellone, head of global equities at KBC Securities. “If no real traffic is seen by June at the latest, things will take a different turn.”
European stocks were treading water and an index of Asian shares snapped a three-day streak of wins. Alstom SA shares slid the most in over two years in Paris after the manufacturer withdrew financial guidance for this fiscal year. Netflix Inc. slumped 9% in US premarket trading after an underwhelming forecast.
In the UK, the yield on 10-year gilts held at Thursday’s levels as fresh details on Prime Minister Keir Starmer’s appointment of Peter Mandelson as ambassador to the US rekindled doubts about his grip on power at home.
Corporate News:
A consortium including Bouygues Telecom, Iliad SA and Orange SA has entered exclusive negotiations to buy billionaire Patrick Drahi’s telecom company SFR. Netflix Inc. gave a forecast for the second quarter that fell short of analysts’ expectations, sending the shares tumbling in premarket trading. Ericsson AB earnings missed analysts’ forecasts in the first quarter, as the Swedish company struggled in a weak market for telecommunications equipment and rising chip costs. Apple Inc.’s marketing executive in charge of the Apple Watch, AirPods, health and smart home initiatives said he’s retiring. Some of the main moves in markets:
Stocks
The Stoxx Europe 600 was little changed as of 9:18 a.m. London time S&P 500 futures rose 0.1% Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average rose 0.3% The MSCI Asia Pacific Index fell 1% The MSCI Emerging Markets Index fell 0.6% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1782 The Japanese yen was little changed at 159.24 per dollar The offshore yuan was little changed at 6.8269 per dollar The British pound was little changed at $1.3521 Cryptocurrencies
Bitcoin fell 0.2% to $75,114.65 Ether fell 0.4% to $2,339.98 Bonds
The yield on 10-year Treasuries declined one basis point to 4.30% Germany’s 10-year yield was little changed at 3.03% Britain’s 10-year yield was little changed at 4.85% Commodities
Brent crude fell 1.2% to $98.20 a barrel Spot gold fell 0.1% to $4,785.09 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling.
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