(April 22): Stocks rose after President Donald Trump indefinitely extended his ceasefire with Iran on a day when traders will also focus on a broad slate of corporate earnings.
S&P 500 futures climbed 0.6% after the benchmark’s first back-to-back loss in three weeks. European stocks posted modest gains amid mixed first-quarter reports. Reckitt Benckiser Group plc fell more than 6% in London on sluggish demand for its medicines. ASM International NV hit a record as AI investment drives strong demand for the chip-equipment maker’s gear.
Brent fell 0.5% to around US$98 ($124.71) a barrel after Tehran said it had received “some sign” that the US was willing to end its blockade of Iranian-linked ships. The development could open a path for new talks after the latest round of negotiations fell through and shipments through the Strait of Hormuz remain largely shut.
“Investors are either standing on the sidelines or have accepted the emotional influence on the market, knowing that negotiations to end the conflict are ongoing,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM.
European bonds outperformed Treasuries, with the 10-year US yield little changed at 4.28%. The dollar fell 0.2%, while gold rose toward US$4,800 an ounce. Bitcoin headed for the highest level since February after jumping 2.9%.
Tesla Inc will be the main focus of corporate results on a busy day for US earnings. A slate of tech names, including Texas Instruments Inc and Lam Research Corp, is also due to report. Boeing Co is among a group of industrials set to report.
See also: Stocks wipe out gains, oil rises as Iran in focus
Corporate news:
- Deutsche Telekom AG is considering a full combination with its American arm T-Mobile US Inc, a move that would create a multinational telecom group and rank as the largest-ever public M&A deal.
- Reckitt Benckiser Group plc’s reported slower-than-expected sales due to a weak cold and flu season in the US and supply disruption in the Middle East.
- ASM International NV projected revenue for the second quarter that exceeded analysts’ estimates, underscoring that artificial intelligence investments are driving demand for the Dutch chip-equipment maker’s gear.
- United Airlines Holdings Inc slashed its full-year profit forecast as higher fuel prices caused by war in the Middle East batter global carriers.
- SpaceX said it has an agreement giving it the right to acquire artificial intelligence startup Cursor for US$60 billion later this year or to pay US$10 billion for the companies’ work together.
Some of the main moves in markets:
See also: Asian stocks gain, oil dips on hopes of Iran talks
Stocks
- The Stoxx Europe 600 rose 0.2% as of 8.37am London time
- S&P 500 futures rose 0.6%
- Nasdaq 100 futures rose 0.8%
- Futures on the Dow Jones Industrial Average rose 0.6%
- The MSCI Asia Pacific Index fell 0.5%
- The MSCI Emerging Markets Index fell 0.3%
Currencies
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro was little changed at US$1.1750
- The Japanese yen was little changed at 159.26 per dollar
- The offshore yuan was little changed at 6.8233 per dollar
- The British pound was little changed at US$1.3517
Cryptocurrencies
- Bitcoin rose 2.9% to US$77,955.26
- Ether rose 3.2% to US$2,389.12
Bonds
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- The yield on 10-year Treasuries was little changed at 4.28%
- Germany’s 10-year yield was little changed at 3.00%
- Britain’s 10-year yield declined two basis points to 4.86%
Commodities
- Brent crude fell 0.5% to US$97.96 a barrel
- Spot gold rose 1% to US$4,766.19 an ounce
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