BLBG: Stocks Trim Monthly Gain Before GDP; Oil Climbs: Markets Wrap
U.S. stock futures signal higher open as Treasuries steady
Higher inflation data lifts euro as bond prices decline
Global equities retreated, trimming a sixth straight monthly advance, as geopolitical concerns linger and investors assessed corporate earnings before a report on growth in the worldâ€™s largest economy.
Nasdaq 100 futures edged higher after the index closed at a record. Alphabet Inc. and Amazon.com Inc. rose at least 3.5 percent in early trading after results topped estimates. In Europe, equities pared a third monthly gain as Barclays Plc dropped the most since November and became the latest bank in the region with trading results to lag those of American firms. Oil closed in on the $50 a barrel mark, almost recouping Thursday losses.
The markets are in a state of flux as President Donald Trump fights an uphill legislative battle to turn his words into action and kept concerns over North Korea alive. The administrationâ€™s tax-cut plan and mixed signals on its view of Nafta stirred markets this week. The U.S. GDP data will offer clues about the Federal Reserveâ€™s interest rate path even as the prospect of a limited government shutdown looms. In France, voters are gearing up for a presidential election runoff after the first round eased some nerves.
â€śItâ€™s a busy end to the week with a lot of data out of both Europe and the U.S.,â€ť Jim Reid, a strategist at Deutsche Bank AG in London, wrote in a note. â€śAhead of tomorrowâ€™s first 100 days of Trump today weâ€™ll see if a shutdown can be avoided.â€ť
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Events that will catch investorsâ€™ eye as the week wraps up:
The U.S. Congress is considering a continuing resolution to avoid a government shutdown.
U.S. GDP is due. Itâ€™s projected to show the economy expanded at a 1 percent annualized rate in the first quarter, the weakest pace in a year.
Here are the main moves in markets:
The Stoxx Europe 600 Index slipped 0.2 percent as of 7:53 a.m. in New York, dropping for a second day after reaching the highest level since August 2015.
Futures contracts on the S&P 500 edged higher. The underlying gauge rose 0.1 percent on Thursday and the Nasdaq 100 Index jumped 0.5 percent to a record.
Japanâ€™s Topix fell 0.3 percent. The gauge gained 2.9 percent for the week, the best performance this year.
The Bloomberg Dollar Spot Index fell 0.2 percent, snapping three days of gains.
The euro gained 0.6 percent while the British pound added 0.3 percent.
The ruble strengthened as much as 0.6 percent after the Russia central bank cut its key rate more by a more-than-forecast 50 basis points.
Oil rose 1.2 percent to $49.57 a barrel, after tumbling 1.3 percent on Thursday. Crude is down 3 percent this month.
Gold climbed 0.3 percent to $1,267.80. The metal is up 1.5 percent for April, its fourth monthly advance.
Nickel led a rally in industrial metals, rising 1.9 percent to $9,510.00 a metric ton. Zinc gained 1.6 percent as workers at Peru smelter call strike.
The yield on 10-year Treasuries was little changed at 2.31 percent.
German benchmark yields rose five basis points to 0.34 percent.