Stock Futures Edge Up Ahead of Economic Data
10 Dezembro 2020 - 9:17AM
Dow Jones News
By Anna Hirtenstein
U.S. stock futures edged up Thursday as investors awaited fresh
data on inflation and unemployment claims, as well as a highly
anticipated European Central Bank policy decision.
Futures tied to the S&P 500 ticked 0.1% higher, suggesting
the broad-market index is on track for muted gains after the
opening bell. Nasdaq-100 futures slid less than 0.1%, pointing to
subdued trading in tech stocks a day after Facebook was hit by a
series of antitrust lawsuits.
Investors this week have been focused on the prospects for fresh
fiscal-stimulus spending that would support businesses and
households through the economic downturn. Lawmakers have broadly
agreed with the White House that the aid package should total
around $900 billion, but key points of contention remain. A
bipartisan group continued to negotiate late Wednesday.
"Should it be passed, the vaccine-driven optimism about getting
through to the other side would brighten," said Fahad Kamal, chief
investment officer at Kleinwort Hambros.
Investors are betting that rising fatalities from the
coronavirus pandemic will exert pressure on Congress to strike a
deal on the relief spending. The infection continued to spread on
Wednesday, with the U.S. death toll hitting a new single-day record
at 3,100.
If "the virus becomes really bad [and] the economic picture
starts to worsen at the same time: you could easily see how this
picture unfolds," Mr. Kamal said. "To prevent this, it is very
critical that policy makers get this done."
Consumer prices in November, due out at 8:30 a.m. ET, are likely
to have ticked up modestly, curbed by weak demand and slack in the
economy from historically elevated levels of uncertainty and
unemployment.
Fresh data on weekly jobless claims will also be out at 8:30
a.m. Economists expect the measure, seen as a proxy for layoffs, to
have edged higher last week. The spread of the virus during
Thanksgiving week and renewed lockdown restrictions in several
states is likely to be weighing on the labor market at a time when
unemployment levels are already high.
In premarket trading, Starbucks rose over 3% after the coffee
chain said its U.S. operations are recovering faster than
anticipated and it is expecting a significant rebound next
year.
Overseas, the pan-continental Stoxx Europe 600 edged up
0.1%.
Among European equities, German food delivery company HelloFresh
rose 7% after it raised its guidance for revenue growth. Ocado, a
British online supermarket, fell nearly 6% after its retail
division didn't do as well as analysts expected in the fourth
quarter.
The European Central Bank will release its latest monetary
policy decision at 7:45 a.m. ET. The central bank is widely
expected to expand and extend its bond-purchase program, and
potentially offer cheap loans to banks for a longer period.
Bonds issued by southern European countries, traditionally
considered to be more risky assets, have rallied in recent days as
investors bet that the ECB will continue to backstop debt markets.
The yield on Spain's 10-year note fell to an all-time low, reaching
0.012%, just days after the yield on a similar bond from Portugal
went negative. Yields drop when bond prices climb. Spain also sold
new 10-year debt at a subzero yield for the first time.
This shows "the ECB has been successful in its policy
objectives, delivering low or negative long-term rates into the
recovery," said Steve Donzé, a macro strategist and fund manager at
Pictet Asset Management. A higher-than-expected increase to
monetary-stimulus programs could further compress government bond
yields, he said.
Separately, ongoing negotiations on a post-Brexit trade deal
between the U.K. and the European Union are weighing on sentiment
in the region. They have until Sunday to reach a decision,
according to a tweet from European Commission President Ursula von
der Leyen. The two sides "understand each other's positions" but
"they remain far apart," she wrote.
The European Commission said Thursday it is preparing
contingency measures for a no-deal scenario, which includes rules
for aviation and road travel.
The British pound weakened 0.5% against the dollar, and 0.7%
against the euro.
"We still think an agreement will be reached in the 11th hour,
but we are also preparing for a breakdown of talks," said Mr.
Donzé. "A hard and dirty Brexit would suppress some of the
recovery."
In Asia, most major benchmarks ended the day lower. Japan's
Nikkei 225 slipped 0.2% and Hong Kong's Hang Seng Index fell 0.4%.
The Shanghai Composite Index was relatively flat.
SoftBank shares rose nearly 11% in Asian trading. climbing to
their highest level in over 20 years. The tech investor owns nearly
a quarter of DoorDash, the food-delivery company that saw its
shares jump 86% in its public-market debut Wednesday.
Write to Anna Hirtenstein at anna.hirtenstein@wsj.com
(END) Dow Jones Newswires
December 10, 2020 07:02 ET (12:02 GMT)
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