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NY stock futures continued to trade in the green, while European stocks fluctuated as investors assessed the prospects for further US stimulus and a possible rebound in technology stocks after Wednesday's plunge. Contracts on the Nasdaq 100 erased earlier losses following the index's biggest drop in the past month following news that Facebook Inc. was being sued by US antitrust officials. The social media giant fell again in premarket trading on Thursday. In Europe, gains in the food and beverage sector were undermined by the fall in technology stocks. The rally in global equities has slowed this week as the pandemic remains relentless while negotiations over the new US stimulus package appear to be stalled, sapping momentum from risk assets driven by the expected economic recovery. Germany's latest measures have failed to contain the spread in Europe's largest economy, while U.S. deaths topped 3.000 a day for the first time. The U.K.'s vaccination drive hit a snag after two people with allergies experienced reactions to the Pfizer shot. The European Central Bank (ECB) has added another half-trillion-euro ($600 billion) dose of stimulus as a winter wave of rising COVID-19 infections shuts down large swaths of the economy ahead of Christmas, the region's most important holiday. The 25-member governing council decided Thursday to increase its current bond-buying stimulus by 500.000 billion euros, to 1,85 trillion euros from 1,35 trillion euros ($1,64 trillion), and to extend the support program until at least March 2022 instead of the current earlier end date of mid-2021.
Fixed rent
Treasuries open lower on yields, continuing this week's trend after a brief respite and higher yields last session. Treasury futures gain value from the open before pausing in another low-volume session. New Zealand bonds rally sharply on heavy selling, while bonds struggle after a weak 20-year auction reopening. Australian bonds gain value, while the sale of 3 million notes sees a negative low-yield print for the first time. The ECB expires later. Cash Treasury yields are ~2bp lower than the New York close on the long-term. The US will sell US$24.000 billion of 30-year bonds later this year, the last of this year's 30-year supply, with no sign of a concession so far. Australian bonds rally as RBA announces A$2028 billion in 2032-2 bond purchases plus an additional A$2 billion in 3-year purchases. Gains extend outside the buying operation, though prices are in line with recent selling. Australia's A$3 million note sale reports an underyield allocation of -0,01%, the first negative print. Demand may be driven by currency hedge buyers looking to exploit recent US dollar premiums. The NZ multi-bond auction saw strong demand, with elevated bids/covers and bond yields clearing ~2bp through pre-auction mid-levels. Japan's reopening 20-year bonds saw weak demand. The bid/cover fell to 3,01 times, the lowest since 2015, and the ask was narrowed by a more than usual 0,12. The 10-year Treasury yield fell 0,92 basis point to 10%. The British 0,218-year yield fell four basis points to 10%. The German 0,62-year yield fell two basis points to -10%. The Australian 0,9905-year yield fell four basis points to XNUMX%.
Money Exchange
The Colombian peso (COP) continued to appreciate 0,4% to $3.475 per dollar. The stock markets' tepid optimism as the dollar remains weak, and the regional currencies' gains, with oil near US$45bp, were also contributing to the recovery.
Variable income
US stock futures are trading little changed in premarket trading, but with mixed performance, oscillating between gains and losses, as investors appear to be growing cautious. Futures contracts linked to the Dow Jones Industrial Average point to an opening gain of around 50 points, but are now trading 0.02% below the flat line. Meanwhile, S&P 500 futures are down around 0.2%, and Nasdaq 100 futures are extending the negative trend, down 0.5% at the time of writing. Investors will remain attentive to the week's key drivers, with expectations for the stimulus package, which appears to be getting closer, and hopes for the Pfizer vaccine's approval in the US, which could propel prices to new record levels. During the session, a series of important data will be released to gauge the performance of the US economy amid the resurgence of outbreaks, including November inflation figures and unemployment claims, which will also influence investor sentiment this Thursday.
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