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    European Stocks Unchanged, Commodities Jump – April 27

    US Futures Climb Supported by Upbeat Earnings

    On Tuesday, US stock-index futures moved higher, supported by upbeat earnings data, which, in turn, strengthened investors’ faith in quick global economic recovery. Today also proved to be a celebratory day for commodities: they climbed to the highest level in nearly three years. 

    US Treasury yields advanced, though they did not succeed in touching recent tops. Derivatives surged, led by Russell 2000, an index of 2000 small-cap companies.  Copper carried on rallying, almost reaching a 2011 high. Even though oil demand might be decreased in the short run, due to the raging pandemic in India, OPEC+ still foresees a strong recovery in the long run, the projection that pushed oil prices higher today.  

    Large companies continue reporting their earnings. HSBC showed that its quarterly earnings were more than twice higher and climbed 2% as a result. Despite posting record profits, Tesla sank 2.60% in premarket New York trading. Amazon, expected to publish its profits this week, jumped 2.04%. Apple and Facebook are reporting this week as well. 

    According to analysts’ predictions, US data will show annualized growth of 6.8% in the first quarter. Analysts do not expect the Federal Reserve to change its dovish stance in response to the upbeat reports. The Feds are expected to keep their monetary policy intact at this week’s meeting. 

    Asian markets were in the red today, as caution ahead of the Federal Reserve’s meeting and a slew of corporate earnings dampened optimism about the global economic recovery from the pandemic. MSCI’s Broadest Index of Asia-Pacific shares outside Japan retreated 0.14%. Australian stocks shed 0.51%. Shares in China remained unchanged. Stocks in Tokyo slid 0.11%. Trading in Europe lacked vigor.  

    These are major moves in the stock markets that investors should follow:

    Stocks

    Futures on the S&P 500 Index inched 0.1% in the early hours of the European session. The Stoxx Europe 600 remained unchanged. The FTSE crawled 0.07% lower. The DAX in Germany retreated 0.3%, while the CAC shed minor 0.06%. The Nikkei in Japan lost 0.46%. The Topix was 0.7% lower. The Hang Seng dwindled 0.04%. 

    Currencies

    The euro gave up 0.2% to trade at $1.2062. The British pound slid 0.2% to $1.3875. The onshore yuan remained unchanged at 6.487 per dollar. The Japanese yen decreased 0.2% to 108.34 per dollar. The AUD/USD pair took a 0.2% dive to 0.7779. The USD/CAD changed hands at 1.2400. USD/CHF was little changed at 0.9138.

    Commodities

    West Texas Intermediate crude climbed 0.8% to $62.38 a barrel. Brent crude added 0.7% to $66.07 a barrel. Gold dropped 0.2% to $1,778.39 an ounce. Silver and Platinum advanced 0.22%, trading at $26.31 per ounce and $1,249.12 per ounce respectively. Copper jumped 1.3% to trade at 445-.25. This is the new record high for Copper.

    Bonds

    The yield on 10-year Treasuries added two basis points to 1.58%. The yield on two-year Treasuries grew less than one basis point to 0.17%. Germany’s 10-year yield rose one basis point to -0.25%. Britain’s 10-year yield advanced one basis point to 0.771%. Japan’s 10-year yield jumped less than one basis point to 0.085%.

    Looking Forward

    Traders should watch the following events this week:

    • Fed Chair Jerome Powell holds a press conference on Wednesday following the Fed meeting.
    • Joe Biden makes his first address as president to a joint session of Congress on Wednesday.
    • U.S. GDP is forecast to show growth strengthened in the first quarter, bolstered by government stimulus on Thursday.

    Have a successful trading day!

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