Stocks near record highs on recovery hopes, Curevac sinks
Send a link to a friend
[May 06, 2021] By
Huw Jones
LONDON (Reuters) - Shares rose to near
record highs on Thursday, underpinned by a better outlook from Europe's
leading carmaker Volkswagen and increasing confidence in economic
recovery in Germany and more widely.
The STOXX index of 600 European companies was up 0.2% at 442.50 points,
just below its record high of 443.61. The MSCI's broadest gauge of world
stocks, ACWI, was up 0.18% at 700.98 points, about 10 points short of
its record high set last month.
"I have seen nothing in this week's price action to change my view that
ultimately the economic prospects in the short to medium term look
fairly positive, though events in India could derail any global
recovery, particularly if COVID variants migrate out of India," said
Michael Hewson, chief market analyst at CMC Markets.
"Companies are generating fairly decent profits, they are taking people
on. The big question is whether the current rebound is sustainable in
the short to medium term, but it does look that way," Hewson said.
In economic news, strong domestic demand for consumer goods propelled a
bigger than expected 3% jump in German industrial orders in March, data
showed on Thursday, suggesting that manufacturers in Europe's largest
economy will support a recovery in the second quarter.
Among the standout earnings, shares in Volkswagen rose 1% after Europe's
biggest carmaker raised its 2021 targets, pointing to strong demand for
premium cars.
British retailer Next raised its full-year profit guidance for the
second time in two months as it reported better than expected first
quarter trading, sending its shares 2% higher.
But Germany's Curevac, hoping for approval for its COVID-19 vaccine,
tumbled 10% following news that U.S. President Joe Biden has thrown his
support behind waiving intellectual property rights for COVID-19
vaccines.
Investors will look for more clues on economic recovery from European
Central Bank Vice President Luis de Guindos, and the central bank's
board member Isabel Schnabel, who speak on Thursday.
[to top of second column] |
A man works at the Tokyo Stock Exchange after market opens in Tokyo,
Japan October 2, 2020. REUTERS/Kim Kyung-Hoon
The Bank of England publishes the outcome of its latest rate-setting committee
meeting and economic forecasts at 1100 GMT. It is expects to say that Britain's
economy is heading for a much stronger recovery this year than it previously
expected, and it might start to slow its pandemic emergency support.
Investors also looked to Scotland's election that could trigger a showdown with
British Prime Minister Boris Johnson over a new independence referendum.
COMMODITIES SHINE
Commodity prices drew strength from the prospects for economic recovery, with
copper flirting with 10-year peaks.
Oil prices extended gains to edge near their March tops as crude stockpiles in
the United States, the world's largest oil consumer, fell more sharply than
expected.
U.S. crude futures stood at $65.91 per barrel, up 0.4% on the day and just below
Wednesday's two-month high of $66.76.
In Asia, Japan's Nikkei jumped 1.8% as it reopened after a five-day holiday.
MSCI's index of Asia-Pacific shares outside Japan gained 0.19%. But Chinese
shares, also resuming trade for the first time since last week, wobbled. The
CSI300 fell 1.2%, led by falls in biotech firms.
Dow hit a record high overnight, having risen 0.29%, while the S&P 500 added
0.07%.
U.S. nominal bond yields held relatively stable, with the 10-year U.S.
Treasuries yield little changed at 1.578%.
The dollar hovered near a two-week high ahead of Friday's U.S. monthly jobs
report, which is expected to show that nonfarm payrolls increased by 978,000
jobs last month.
The euro was little changed at $1.2022 while the yen changed hands at 109.32 per
dollar.
(Editing by Himani Sarkar and Kim Coghill)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |