US futures up as earnings aid mood, Asia dips: markets wrap

US equity futures climbed Friday amid earnings optimism that helped Wall Street edge toward an all-time high despite mixed economic data. Asian stocks slipped, hurt by a slide in Hong Kong.

US and European contracts were up after the S&P 500 advanced closer to a new peak. Technology firms like Microsoft Corp. rallied and the Nasdaq 100 reached a record, while cyclicals lagged. Strong results from Twitter Inc. and Snap Inc. boosted Facebook Inc. and Alphabet Inc. in extended trading.

In Asia, Hong Kong stocks slid as potential penalties for ride-hailing giant Didi Global Inc. sapped sentiment toward Chinese tech firms. Regulators are considering serious, perhaps unprecedented, penalties after Didi’s controversial initial public offering last month. Japan is shut for a holiday.

Longer-term Treasuries snapped a two-day drop Thursday and strong demand for an auction of 10-year inflation-protected securities produced a record-low yield. Cash Treasury trading resumes when London opens.

Global stocks are on course for a modest weekly gain, bolstered by generally robust corporate profits and stimulus support. At the same time, July’s decline in 10-year US Treasury yields may signal concern over a possible peak in economic growth, in part as the delta coronavirus strain forces mobility curbs in some countries.

“One of the most under-appreciated things about the equity markets right now is just how much these earnings have risen, and how much analysts have had to revise their earnings estimates up,” Tracie McMillion, head of global asset allocation strategy at Wells Fargo Investment Institute, said on Bloomberg Television. She added she’s tracking the delta variant in case it affects consumer behaviour.

The latest US economic reports were mixed, showing sales of previously owned homes rose for the first time in five months, while jobless claims unexpectedly climbed.

Meanwhile, the Summer Olympics officially begin in Tokyo, though for the first time in history events will be held without spectators due to Covid-19 restrictions. In the US, a recent rise in infections shows no signs of abating as the delta variant spreads through unvaccinated sections of the population.

Elsewhere, oil held most of a three-day increase amid expectations of tightening supplies as demand recovers. Bitcoin traded just above $32 000.

These are some of the main moves in markets:

Stocks

• S&P 500 futures were up 0.3% as of 6:32 a.m. in London. The S&P 500 rose 0.2%
• Nasdaq 100 futures climbed 0.3%. The Nasdaq 100 rose 0.7%
• Australia’s S&P/ASX 200 index was little changed
• South Korea’s Kospi index added 0.1%
• Hong Kong’s Hang Seng index dipped 1.2%
• China’s Shanghai Composite index shed 0.8%
• Euro Stoxx 50 futures increased 0.3%

Currencies

• The Bloomberg Dollar Spot Index was steady
• The euro was at $1.1769
• The Japanese yen was at 110.26 per dollar
• The offshore yuan traded at 6.4752 per dollar

Bonds

• The yield on 10-year Treasuries declined one basis point to 1.28% on Thursday. Futures were steady.

Commodities

• West Texas Intermediate crude slipped 0.3% to $71.68 a barrel
• Gold was at $1 804.42 an ounce