European stocks rebounding along with U.S. equity futures
Wall Street stocks pulled back from all-time highs overnight while bond yields fell as investors turned cautious, gauging the potential impact from COVID-19 variants. On the data front, the Labor Department said the number of Americans filing for unemployment benefits rose slightly last week, adding to worries about economic recovery. As such, the S&P 500 fell 0.86%, the Dow Jones Industrial Average lost 0.75%, and the Nasdaq shed 0.72%.
Today in Asia, stocks hit two-month lows amid worries about a global spread of the Delta virus. MSCI’s broadest index of Asia-Pacific shares outside Japan slopped to a level not seen since mid-May before trimming losses to -0.3%. Tokyo’s Nikkei 225 was down 0.63% while the Kospi in South Korea declined 1.07%. Sydney’s S&P/ASX 200 gave up 0.93% while the Shanghai Composite index lost just 0.04%.
European equities opened higher on Friday, with stocks rebounding along with U.S. equity futures. The Stoxx Europe 600 index rose 1.05%. On the data front, the U.K. economy slowed in May, after a sharp rise in April. The gross domestic product grew 0.8% on the month, while April’s growth was revised down to 2% from a prior estimate of 2.3%.
Meanwhile, the dollar looks mixed following yesterday’s decline. Recovery attempts look muted, especially as risk sentiment has improved somewhat in recent trading. EURUSD has settled above 1.1800, struggling for direction ahead of the weekend. The path of least resistance is to the downside for the time being. If the greenback sees a more robust recovery, the pair could get back below 1.1825, down to 1.1800.