European stocks rose with U.S. futures on Thursday as hopes for reassuring U.S. jobs data later in the session added to momentum from positive vaccine developments. Treasuries were steady and the dollar slipped.
Gains on the Stoxx Europe 600 were helped by banks, after lagging the index most of the week. The sentiment strengthened as investors measured the progress in reopening economies against a jump in coronavirus cases. Contracts on the S&P 500 ticked higher before the June employment report, coming a day early because of markets closing for the holiday on Friday. Economists expect a rise of just over 3 million jobs.
Investors who are driving stocks higher know there’s still a host of threats on the horizon, from fresh virus outbreaks in Japan and the U.S. to moves in Congress to sanction China. Minutes of the Federal Reserve’s June meeting revealed that various participants viewed the economy needing support “for some time.”
“There’s this inherent tension between health of the economy and health of the population,” said David Lebovitz, a global market strategist at JPMorgan Asset Management. “It’s going to be the way to think about what drives markets over the next couple of weeks or months.”
Hong Kong shares outperformed after traders returned from a holiday, despite the recent tensions over China’s new national security law over the city. Stocks in Australia, China, Japan and South Korea also rose.
Elsewhere, oil was steady as traders weighed ongoing concerns about the spread of coronavirus across the U.S. south against a strong drawdown in crude stockpiles.