World stocks were steady on Tuesday, April 24, after three sessions of losses as a result of strong earnings from the likes of Google and as a rise in benchmark U.S. bond yields towards 3 percent stalled, while oil prices stretched to fresh highs above $75 a barrel.
The MSCI’s world equity index .MIWD00000PUS was a bit higher after three days of declines.
The recovery in stocks came as bond markets also bounced back from a selloff. U.S. 10-year Treasury yields came within striking distance of the psychologically significant barrier of 3 percent US10YT=RR on Monday, which in the past has triggered market spasms.
U.S. stock futures pointed to a firm open on Wall Street ESc1 1YMc1, although European shares were mixed with stock markets in London .FTSE and Frankfurt .GDAXI around 0.3 percent higher and shares in Paris .FCHI flat.
Markets brushed off further signs that European powerhouse economy Germany is losing some of its momentum, with the Ifo business climate index falling in April.
In Asia, Japan’s Nikkei .N225 added 0.9 percent as a lower yen supported export-heavy firms and Chinese shares posted their strongest gains in two months .CSI300 .SSEC.
“There’s a tug and a pull from all kinds of things in equity markets right now, such as the approach of U.S. bond yields to 3 percent, but I don’t think that would be the end of the world,” said Lukas Daalder, chief investment officer at Robeco.
Earnings meanwhile, especially from the tech sector, were in focus after a turbulent few months for leading U.S. tech firms.
Google parent Alphabet (GOOGL.O) was up slightly in volatile after-hours trading on Monday after the tech giant reported a 73 percent jump in profits in the first quarter.
Chipmaker AMS (AMS.S) reported first-quarter sales towards the lower end of its guidance range on Monday and warned of a downturn owing to weaker orders from one of its main customers.
AMS did not name the customer, but the Austrian company is a big supplier to Apple (AAPL.O), making components for the iPhone.
SAP SAP.G, Europe’s largest tech company by stock market valuation, meanwhile announced upbeat results in the seasonally tough first quarter.
Of around 18 percent of the companies in the S&P 500 that have already reported, 78.2 percent beat consensus estimates.
