Europe Stocks Near Longest Win Streak Since 1999: Markets Wrap

(Bloomberg) -- European stocks headed for the longest winning streak since 1999 as bullishness swept across markets after a blowout earnings season and economic recovery out of lockdowns.

The Stoxx 600 Index rose 0.2%, poised for a tenth straight record close, and France’s CAC 40 approached the highest in more than two decades. U.S. stock futures were steady after the S&P 500 closed at a record high. Walt Disney Co. advanced in pre-market trading after reporting better-than-expected quarterly results.

Europe and the U.S. have pushed ahead with inoculations, attracting investors as travel and reopenings gather pace. Traders plowed $1.5 billion into European equity funds this week, the most in two months, according to Bank of America. Along with the wave of strong corporate results, the global backdrop is sufficient for some strategists to predict a rebound in the reflation trade tied to economic revival.

“It’s really hard to keep people back, or put people back, in lockdown,” Ann Miletti, head of active equity at Wells Fargo Asset Management, said in an interview on Bloomberg Television. She flagged “pent-up demand” but also warned of the risk of an equity correction after a prolonged period of calm.

The CAC 40’s 24% rise so far this year ranks second only to some Nordic benchmarks among major western European equity indexes. Stuffed with cyclical shares, the gauge may be headed for further outperformance on signs the global economy is shrugging off the delta variant.

Elsewhere, Treasury yields dipped alongside the dollar. Bitcoin traded around $46,000.

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These are the main moves in markets:

Stocks

Futures on the S&P 500 were little changed as of 6:38 a.m. New York timeFutures on the Nasdaq 100 were little changedFutures on the Dow Jones Industrial Average rose 0.1%The Stoxx Europe 600 rose 0.2%The MSCI World index rose 0.1%

Currencies

The Bloomberg Dollar Spot Index was little changedThe euro rose 0.2% to $1.1749The British pound was little changed at $1.3797The Japanese yen rose 0.1% to 110.27 per dollar

Bonds

The yield on 10-year Treasuries declined two basis points to 1.34%Germany’s 10-year yield was little changed at -0.46%Britain’s 10-year yield declined one basis point to 0.59%

Commodities

West Texas Intermediate crude fell 0.4% to $68.81 a barrelGold futures rose 0.6% to $1,761.70 an ounce.