Global Stocks Struggle for Direction as Regulators Discuss Market Volatility - Barron's

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A Qualcomm office in San Jose, California.

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Global markets struggled on Thursday, as investors react to a barrage of earnings and brace for the key jobs report.

Asian markets declined, with the Nikkei 225 down 1% and losses in Hong Kong, Seoul, Sydney and Shanghai. The dip on Thursday comes as the MSCI All-Countries Asia-Pacific has climbed 6% this year, outpacing the 2% advance for the U.S. S&P 500.

The Stoxx Europe 600 edged up 0.1%.

Bond yields have started to climb again, buoyed by hopes for the economy to rev higher as coronavirus vaccines get rolled out and as the impact of fiscal and monetary stimulus gets absorbed into the economy. Those higher bond yields make relative valuation for equities more difficult.

Treasury Secretary Janet Yellen is due to hold a meeting with the heads of the Securities and Exchange Commission, Federal Reserve Board, Federal Reserve Bank of New York, and Commodity Futures Trading Commission to discuss recent volatility in financial markets. That is a reference to the surge, and then decline, in the value of companies, including videogames retailer GameStop and cinema chain AMC Entertainment, that have been evangelized on the Reddit message board.

Shares of eBay are set to climb, after the online auctioneer reported stronger-than-forecast earnings and revenue. PayPal also may gain, as the payment service’s profit tripled in the fourth quarter.

Qualcomm shares are set for pressure, as it joined the growing ranks of microchip companies flagging a shortage of supplies.

Drug manufacturer Merck, fast-food restaurant operator Yum Brands, and after the close, automobile maker Ford Motor Co., will report results.

The economic calendar includes weekly jobless claims and fourth-quarter productivity data, ahead of Friday’s nonfarm payrolls report.

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Global Stocks Struggle for Direction as Regulators Discuss Market Volatility - Barron's
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