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GLOBAL MARKETS-Stocks near record highs on recovery hopes, Curevac sinks

Published 05/06/2021, 04:07 PM
Updated 05/06/2021, 04:10 PM
©  Reuters

© Reuters

* Volkswagen, retailer Next earnings updates shine
* Curevac sinks after U.S. backs waiving IP on COVID
vaccines
* German consumer goods bounce back
* Pound eyes BoE, Scottish election
* Global asset performance http://tmsnrt.rs/2yaDPgn
* World FX rates http://tmsnrt.rs/2egbfVh

By Huw Jones
LONDON, May 6 (Reuters) - Shares rose to near record highs
on Thursday, underpinned by a better outlook from Europe's
leading carmaker Volkswagen VOWG.DE and increasing confidence
in economic recovery in Germany and more widely.
The STOXX .STOXX index of 600 European companies was up
0.2% at 442.50 points, just below its record high of 443.61. The
MSCI's broadest gauge of world stocks, ACWI .MIWD00000PUS , was
up 0.18% at 700.98 points, about 10 points short of its record
high set last month.
"I have seen nothing in this week's price action to change
my view that ultimately the economic prospects in the short to
medium term look fairly positive, though events in India could
derail any global recovery, particularly if COVID variants
migrate out of India," said Michael Hewson, chief market analyst
at CMC Markets.
"Companies are generating fairly decent profits, they are
taking people on. The big question is whether the current
rebound is sustainable in the short to medium term, but it does
look that way," Hewson said.
In economic news, strong domestic demand for consumer goods
propelled a bigger than expected 3% jump in German industrial
orders in March, data showed on Thursday, suggesting that
manufacturers in Europe's largest economy will support a
recovery in the second quarter. Among the standout earnings, shares in Volkswagen rose 1%
after Europe's biggest carmaker raised its 2021 targets,
pointing to strong demand for premium cars.
British retailer Next NXT.L raised its full-year profit
guidance for the second time in two months as it reported better
than expected first quarter trading, sending its shares 2%
higher.
But Germany's Curevac 5CV.DE , hoping for approval for its
COVID-19 vaccine, tumbled 10% following news that U.S. President
Joe Biden has thrown his support behind waiving intellectual
property rights for COVID-19 vaccines. Investors will look for more clues on economic recovery from
European Central Bank Vice President Luis de Guindos, and the
central bank's board member Isabel Schnabel, who speak on
Thursday.
The Bank of England publishes the outcome of its latest
rate-setting committee meeting and economic forecasts at 1100
GMT. It is expects to say that Britain's economy is heading for
a much stronger recovery this year than it previously expected,
and it might start to slow its pandemic emergency support.
Investors also looked to Scotland's election that could
trigger a showdown with British Prime Minister Boris Johnson
over a new independence referendum. [nL4N2MS2N8

COMMODITIES SHINE
Commodity prices drew strength from the prospects for
economic recovery, with copper CMCU3 flirting with 10-year
peaks. MET/L
Oil prices extended gains to edge near their March tops as
crude stockpiles in the United States, the world's largest oil
consumer, fell more sharply than expected.
U.S. crude futures stood at $65.91 per barrel CLc1 , up
0.4% on the day and just below Wednesday's two-month high of
$66.76. O/R
In Asia, Japan's Nikkei .N225 jumped 1.8% as it reopened
after a five-day holiday.
MSCI's index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 0.19%. But Chinese shares, also resuming
trade for the first time since last week, wobbled. The CSI300
.CSI300 fell 1.2%, led by falls in biotech firms.
Dow .DJI hit a record high overnight, having risen 0.29%,
while the S&P 500 .SPX added 0.07%.
U.S. nominal bond yields held relatively stable, with the
10-year U.S. Treasuries yield little changed at 1.578%
US10YT=RR .
The dollar =USD hovered near a two-week high ahead of
Friday's U.S. monthly jobs report, which is expected to show
that nonfarm payrolls increased by 978,000 jobs last month.
The euro was little changed at $1.2022 EUR= while the yen
changed hands at 109.32 per dollar JPY= .

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Himani Sarkar and Kim Coghill)

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