U.S. stocks fluctuated on Wednesday as risks from a highly infectious coronavirus strain trumped growing confidence in the global economic recovery.
The S&P 500 Index swung between gains and losses after ADP data showed U.S. companies added more jobs in than expected, while pending home sales unexpectedly rose Cyclical stocks bore the brunt of losses in the Stoxx Europe 600 gauge, with airlines struggling as fears of the more contagious Delta variant continue to spur tourism curbs. Japan and Hong Kong led modest losses in Asia. Oil rose, while Bitcoin slipped.
Wednesday’s cautious turn comes amid better-than-expected ADP numbers and surprisingly positive data from the U.S. and Europe showing surging confidence in the economic recovery. That suggests markets remain finely balanced between hopes for an imminent return to normal and fears that runaway inflation or Covid variants could derail the rebound.
“The environment in Q3 should still be supportive for risky assets, though fear of bouts of persistent inflation could alter this scenario,” Sebastien Galy, senior macro strategist at Nordea Investment Funds SA, wrote in a note. “We expect to see bouts of volatility from this.”
Here are some events to watch in the markets this week:
These are some of the main moves in markets:
Stocks
Currencies
Bonds
Commodities
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