GLOBAL MARKETS-Stocks near record highs on recovery hopes, Curevac sinks

  • Reuters
  • Stock Market News
GLOBAL MARKETS-Stocks near record highs on recovery hopes, Curevac sinks
Credit: © Reuters.

* Volkswagen (DE: VOWG_p ), retailer Next earnings updates shine

* Curevac sinks after U.S. backs waiving IP on COVID vaccines

* German consumer goods bounce back

* Pound eyes BoE, Scottish election

* Global asset performance

* World FX rates

By Huw Jones

LONDON, May 6 (Reuters) - Shares rose to near record highs on Thursday, underpinned by a better outlook from Europe's leading carmaker Volkswagen VOWG.DE and increasing confidence in economic recovery in Germany and more widely.

The STOXX .STOXX index of 600 European companies was up 0.2% at 442.50 points, just below its record high of 443.61. 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 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.

"Companies are generating fairly decent profits, they are taking people on. The big question is whether the current rebound is sustainable in the short to medium term, but it does look that way," Hewson said.

In economic news, strong domestic demand for consumer goods propelled a bigger than expected 3% jump in German industrial orders in March, data showed on Thursday, suggesting that manufacturers in Europe's largest economy will support a recovery in the second quarter. the standout earnings, shares in Volkswagen rose 1% after Europe's biggest carmaker raised its 2021 targets, pointing to strong demand for premium cars.

British retailer Next NXT.L raised its full-year profit guidance for the second time in two months as it reported better than expected first quarter trading, sending its shares 2% higher.

But Germany's Curevac 5CV.DE , hoping for approval for its COVID-19 vaccine, tumbled 10% following news that U.S. President Joe Biden has thrown his support behind waiving intellectual property rights for COVID-19 vaccines. will look for more clues on economic recovery from European Central Bank Vice President Luis de Guindos, and the central bank's board member Isabel Schnabel, who speak on Thursday.

The Bank of England publishes the outcome of its latest rate-setting committee meeting and economic forecasts at 1100 GMT. It is expects to say that Britain's economy is heading for a much stronger recovery this year than it previously expected, and it might start to slow its pandemic emergency support. also looked to Scotland's election that could trigger a showdown with British Prime Minister Boris Johnson over a new independence referendum. [nL4N2MS2N8


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

Oil prices extended gains to edge near their March tops as crude stockpiles in the United States, the world's largest oil consumer, fell more sharply than expected.

U.S. crude futures stood at $65.91 per barrel CLc1 , up 0.4% 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.

Dow .DJI hit a record high overnight, having risen 0.29%, while the S&P 500 .SPX added 0.07%.

U.S. nominal bond yields held relatively stable, with the 10-year U.S. Treasuries yield little changed at 1.578% US10YT=RR .

The dollar =USD hovered near a two-week high ahead of Friday's U.S. monthly jobs report, which is expected to show that nonfarm payrolls increased by 978,000 jobs last month.

The euro was little changed at $1.2022 EUR= while the yen changed hands at 109.32 per dollar JPY= .

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates YTD Global asset performance

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Himani Sarkar and Kim Coghill)

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