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Stocks marched higher alongside U.S. futures on Friday as a solid start to the American earnings season, easing trade tensions and promising economic data all combined to buoy sentiment. Treasuries slipped and the pound weakened.
The Stoxx Europe 600 Index jumped in early trading. International Consolidated Airlines Group SA, which removed a shareholdings limit, was among the gainers, though there were declines for some retailers including Casino Guichard-Perrachon SA, which cut its profit guidance. Asia’s main markets notched modest gains, surging briefly after data showed Chinese industrial output beat estimates. An increase in S&P 500 Index contracts signaled it may set yet another record.
The longest-dated Treasuries dipped after the U.S. announced plans for a new 20-year bond. The yuan rose, while the euro largely steadied before the release of inflation data later Friday. The dollar held in a tight range against its major peers. The pound erased gains and gilts turned higher as U.K. retail sales data disappointed.
Investors are heading into the weekend buoyed by the completion of an initial Sino-American trade deal and solid results from the biggest banks on Wall Street. The earnings season will continue to ramp up next week with the likes of Procter & Gamble Co. and Intel Corp. reporting, but for now most economic data is also supporting sentiment: China GDP was in line with estimates a day after strong U.S. retail sales numbers.
China’s industrial production “is quite telling, because more broadly it speaks to the bottoming out in the global industrial-production cycle, which we’ve been looking for and the market’s been looking for for the last six to nine months,” John Woods, chief investment officer for the Asia Pacific at Credit Suisse, told Bloomberg TV in Hong Kong. This suggests “the global economy is on a recovering path.”
Elsewhere, the yield on Taiwanese government debt fell to a record intraday low as insurers roared back into the market. Oil edged higher alongside gold. Emerging-market equities also climbed, on course for a seventh week of gains.
These are some of the main moves in markets:
Stocks
The Stoxx Europe 600 Index increased 0.6% as of 9:33 a.m. London time.Futures on the S&P 500 Index rose 0.2%.Nasdaq 100 Index futures climbed 0.2%.The MSCI Asia Pacific Index increased 0.4%.
Currencies
The Bloomberg Dollar Spot Index rose 0.1%.The British pound dipped 0.1% to $1.3071.The euro declined 0.1% to $1.1129.The Japanese yen was little changed at 110.18 per dollar.
Bonds
The yield on 10-year Treasuries climbed one basis point to 1.82%.The yield on 30-year Treasuries rose two basis points to 2.28%.Britain’s 10-year yield dipped two basis points to 0.623%.Germany’s 10-year yield rose less than one basis point to -0.22%.
Commodities
West Texas Intermediate crude was unchanged at $58.52 a barrel.Gold strengthened 0.1% to $1,554.53 an ounce.Copper increased 0.7% to $2.87 a pound.Platinum gained 1.7% to $1,018.30 an ounce.
