Live Markets: Morning bid: Powell reassures stocks, GameStop frenzy returns

Kinepolis NV

25/02/2021 08:04

* Powell reaffirms rates would stay low
    * Earnings still in focus

    Feb 25 - Welcome to the home for real-time coverage of
markets brought to you by Reuters reporters. You can share your
thoughts with us at markets.research@thomsonreuters.com 
    
    MORNING BID: POWELL REASSURES STOCKS, GAMESTOP FRENZY
RETURNS (0800 GMT)
    Reassuring words from Federal Reserve chief Jerome Powell
that rates will remain low for a long time means stock markets
are rallying again. 
    Asian shares, excluding Japan, are up 1.6%  .MIAPJ0000PUS , 
Japan's Nikkei is back above the 30,000-mark, European stocks
are tipped to open higher and U.S. stock futures are up. And
Reuters polls forecast the equity bullrun to continue at least
another six months.
    The Fed's dovish message is resonating in currency markets
too, with the dollar languishing near three-year lows.
    But....bond markets are still not playing ball. U.S. 10-year
Treasury yields are up 3 bps at 1.42%  US10YT=RR , near one-year
highs. Investors clearly don't believe the Fed will be able to
keep rates for as low as it would like. The view might be that 
inflation will be a bigger problem than anticipated
    So U.S. yields are on course to end February with a 32 bps
rise, the biggest monthly rise since late-2016 -- when Donald
Trump's election win was encouraging reflation bets.
    And so this morning brings fresh central bank angst over
rising yields; ECB board member Isabel Schnabel is already out
on the wires saying the bank will fight any big increases in
inflation-adjusted interest rates.  urn:newsml:reuters.com:*:nL8N2KV1RF
    And are "gamestonks" back? GameStop  GME.N  the videogame
retailer at the heart of January's retail trader frenzy saw
shares soar nearly 104% on Wednesday and this morning, its 
Frankfurt-listed shares have already jumped 85%  urn:newsml:reuters.com:*:nL1N2KU3K7
       
Key developments that should provide more direction to markets
on Thursday: 
    
- StanChart  STAN.L  restores its dividend, reaffirms long-term
profit goals.  urn:newsml:reuters.com:*:nL1N2KV09J
- Anheuser-Busch , the world's largest brewer,
reports a higher-than-expected Q4 core profit.  urn:newsml:reuters.com:*:nL1N2KV0EX
- European earnings due out: ASM, Saint Gobain, Ferrovial,
Evraz, St James Place,Telefonica, Anglo American,  Centrica,
BAE, Veolia, Suez, Bayer, Adecco, Axa
-Bank of Korea left interest rate unchanged at 0.5% as expected
 urn:newsml:reuters.com:*:nL1N2KU06H
-Fed speakers: New York Fed's John Williams, Atlanta Fed's 
Raphael Bostic
-ECB Vice President Luis de Guindos speaks at 1500 GMT
-U.S durable goods orders Jan/GDP second estimate for Q4/Core
PCE/Initial jobless claims 
-US corp earnings: Bestbuy, Domino's pizza, Papa John's

    (Dhara Ranasinghe)
    ******
    
    
    EUROPE REGAINS BUOYANCY - THANKS TO POWELL (0649 GMT)
    European stock markets have regained some buoyancy but to do
so they needed another shot of reassurances from Fed Chair
Jerome Powell, who reaffirmed interest rates in the world's No.1
economy would stay low for a long time, calming inflation fears.
    Futures on the Euro STOXX 50  STXEc1  are rising for a
second straight day, last up 0.6%, and getting closer to the
11-month high hit earlier in February. DAX futures  FDXc1 
meantime are just 0.9% away from their last all-time peak.
    In a second day of testimony in Washington, Powell
reiterated the Fed's promise to get the U.S. economy back to
full employment and to not worry about inflation unless prices
rose in a persistent and troubling way.  urn:newsml:reuters.com:*:nL1N2KU1XL
    As a result of his remarks a selloff in technology-related
stocks eased, helping Wall Street ended higher overnight. 
    Asian shares jumped too.
    Back to Europe there a number of earning updates that could
liven up the session, as the Q4 reporting reason, which has been
better than expected so far, enters its final stages. 
    Check out these upbeat looking headlines:
    * StanChart restores dividend, reaffirms targets as COVID-19
halves profit  urn:newsml:reuters.com:*:nL1N2KV09J
    * Adecco says latest COVID-19 lockdowns not having big
impact so
far  urn:newsml:reuters.com:*:nL8N2KV1G4
    * AB InBev sees improved 2021 after end-2020 earnings beat 
 urn:newsml:reuters.com:*:nL8N2KT5MD
    * France's Safran sees gradual recovery after crisis-hit
2020
 urn:newsml:reuters.com:*:nL1N2KV09J

    But there are also not-so-good-looking ones:
    * Axa posts 18% net income drop as COVID-19 claims weigh
 urn:newsml:reuters.com:*:nP6N2CI023
    * Satellite firm SES sees lower earnings, sales in 2021
 urn:newsml:reuters.com:*:nL8N2KV1H8
    * Belgian cinema group Kinepolis posts first annual loss in
over
decade  urn:newsml:reuters.com:*:nL8N2KV1FU

    (Danilo Masoni)
    *****

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Reuters Poll: Global stock market outlook    https://tmsnrt.rs/3usRbCf
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>