(Bloomberg) — U.S. and European equity futures climbed with Asian stocks Monday ahead of the start of an earnings season that will provide more clues on how companies are coping with the pandemic. The dollar slipped.
Japanese shares outperformed, rising more than 2%, with gains more modest in Hong Kong, South Korea and Australia. Chinese shares renewed their advance after last week’s surge, while S&P 500 futures rose as investors awaited results from key banks. Treasury yields ticked lower. Oil retreated, and gold rose above $1,800 an ounce.
With global equities trading near their highest since February, investors are waiting to hear what companies have to say about the profit outlook. New coronavirus outbreaks in some parts of the world are causing partial lockdown restrictions to be reimposed, fueling doubts about the likely pace of the global recovery.
“We think earnings are likely to recover in the second half of the year and excess liquidity will continue to support risk assets,” said Julie Fox at UBS Private Wealth Management. “We see further potential in global equities and think there’s some upside in segments of the market that have underperformed during the crisis.”
Florida on Sunday posted the biggest one-day rise in cases since the coronavirus pandemic began in the U.S., reporting 15,300 new infections. South Carolina and Texas set new marks a day earlier, while New York’s rate remained steady.
“We do think that the global economy is now entering a multi-year recovery but there are going to be wobbles…