Stocks, U.S. Futures Steady After Nasdaq Jump: Markets Wrap - Yahoo Finance

(Bloomberg) -- European stocks edged higher with U.S. futures on Wednesday as cyclical shares outperformed and the rally in the technology sector appeared to lose steam.

The Stoxx Europe 600 Index swung between losses and gains as automakers, energy firms and banks led the gauge. The exception was mining stocks, which hit a three-week low amid declining iron ore prices. Just Eat Takeaway.com NV gained after announcing it expects a further acceleration of order growth in 2021 compared with last year.

In the U.S., futures on the Dow Jones Industrial Average and the Russell 2000 indexes outperformed, while Nasdaq 100 contracts drifted after the underlying benchmark advanced nearly 4% amid a surge in growth stocks. Treasury yields steadied below their recent peaks as the first in a string of U.S. auctions went off without disrupting markets.

In Asia, China’s CSI 300 gauge rose modestly after a slump on Tuesday that evaded state efforts to slow the pace of losses.

While Tuesday’s pullback in Treasury yields spurred a rush into stay-at-home winners, the rotation from growth to value shares looked set to resume on Wednesday. Congress is poised to send the $1.9 trillion Covid-19 relief plan to President Joe Biden for his signature, while vaccinations are picking up amid further signs of economic recovery. Upcoming consumer prices data in the U.S. are also expected to show a slightly faster annual increase.

The rising trend in bond yields is consistent with economic growth expectations, said Lauren Goodwin, portfolio strategist at New York Life Investments. That backdrop still favors cyclicals over defensive assets and “supports equities over bonds, and a weaker U.S. dollar,” she said.

Elsewhere, oil was steady as the dollar strengthened. The Australian dollar fell after the central bank governor suggested markets may be getting ahead of themselves by pricing in an interest-rate increase within the next couple of years.

Here are some key events to watch:

EIA crude oil inventory report is due WednesdayThe U.S. February consumer price index will offer the latest look at price pressures Wednesday.The U.S. government auctions 3-, 10- and 30-year Treasuries this week.The European Central Bank holds its monetary policy meeting and President Christine Lagarde is set to do a briefing Thursday.

Here are the main moves in markets:

Stocks

Futures on the S&P 500 Index were little changed at 9:04 a.m. London time.The Stoxx Europe 600 Index increased 0.1%.The MSCI Asia Pacific Index gained 0.3%.The MSCI Emerging Market Index rose 0.7%.

Currencies

The Bloomberg Dollar Spot Index jumped 0.1%.The euro was little changed at $1.1898.The British pound was little changed at $1.3889.The onshore yuan strengthened 0.1% to 6.505 per dollar.The Japanese yen weakened 0.2% to 108.71 per dollar.

Bonds

The yield on 10-year Treasuries rose two basis points to 1.55%.The yield on two-year Treasuries increased less than one basis point to 0.16%.Germany’s 10-year yield gained less than one basis point to -0.30%.Britain’s 10-year yield was unchanged at 0.727%.Japan’s 10-year yield gained less than one basis point to 0.128%.

Commodities

West Texas Intermediate crude was little changed at $64 a barrel.Brent crude declined 0.2% to $67.41 a barrel.Gold weakened 0.1% to $1,713.56 an ounce.

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