GLOBAL MARKETS-Recovery hopes to underpin Wall Street, vaccine makers slide

  • Reuters
  • Stock Market News
GLOBAL MARKETS-Recovery hopes to underpin Wall Street, vaccine makers slide
Credit: © Reuters.

* Pharmas fall after U.S. backs waiving IP on COVID vaccines

* Euro zone retail sales beat expectations

* Bank of England raises 2021 growth forecast

* Gold gains, oil and dollar ease

* Global asset performance http://tmsnrt.rs/2yaDPgn

* World FX rates http://tmsnrt.rs/2egbfVh

By Huw Jones

LONDON, May 6 (Reuters) - Wall Street was set for a steady start on Thursday as confidence in the economic recovery offset jitters in American pharmas over rights to their COVID vaccines.

Futures contracts in the S&P 500 EScv1 , Nasdaq NQcv1 and Dow Jones Industrials 1YMc1 were all slightly firmer.

The Dow Jones industrial average .DJI hit a record high on Wednesday as investors bet on recovery from the pandemic lifting 'cyclical' companies that typically rise in lockstep with an economic rebound.

Analysts expect data on Thursday to show a decline in weekly jobless claims in the United States, reinforcing the recovery picture.

Friday's U.S. monthly jobs report is also expected to show that nonfarm payrolls increased by 978,000 jobs last month.

Shares in Pfizer (NYSE: PFE ), Moderna and other pharmaceutical companies remained under pressure after President Joe Biden on Wednesday supported waiving intellectual property rights on COVID-19 vaccines to boost the fight against the pandemic, piling pressure on Europe to follow suit. drew comfort from the latest economic data and forecasts in Europe which pointed to a recovery still on track.

Retail sales in the euro zone beat expectations with a 2.7% rise in March as curbs on shoppers eased. "This bodes well for the months ahead when further restrictions can be expected to be lifted," ING bank said.

The Bank of England increased its forecast for Britain's economic growth this year after its coronavirus slump. STOXX .STOXX index of 600 European companies was flat, still near last month's record high. 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, also 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 (NS: CMC ) Markets.

The dollar index =USD eased 0.3% to 90.99.

COMMODITIES SHINE

Commodity prices also drew strength from the prospects for economic recovery, with copper CMCU3 flirting with 10-year peaks. MET/L

But oil prices gave up initial gains despite crude stockpiles in the United States, the world's largest oil consumer, falling more sharply than expected.

U.S. crude futures stood at $65.23 per barrel CLc1 , off 0.6% 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.

U.S. nominal bond yields held relatively steady, with the 10-year U.S. Treasuries yield little changed at 1.5749% US10YT=RR .

The euro was also little changed at $1.2048 EUR= while the yen changed hands at 109.12 per dollar JPY= . Gold XAU= rose 0.4%.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates YTD

http://tmsnrt.rs/2egbfVh Global asset performance

http://tmsnrt.rs/2yaDPgn

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Kirsten Donovan)

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