U.S. Futures Climb With Stocks on China Tariff Cut: Markets Wrap

Stocks

• Futures on the S&P 500 Index climbed 0.2% as of 6:28 a.m. New York time.
• The Stoxx Europe 600 Index increased 0.3%.
• The MSCI Asia Pacific Index gained 1.8%.
• The MSCI Emerging Market Index gained 1.3%.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• The euro was little changed at $1.0998.
• The British pound sank 0.3% to $1.2964.
• The onshore yuan rose 0.1% to 6.971 per dollar.
• The Japanese yen was little changed at 109.85 per dollar.

Bonds

• The yield on 10-year Treasuries fell one basis point to 1.64%.
• The yield on two-year Treasuries dipped one basis point to 1.43%.
• Germany’s 10-year yield decreased less than one basis point to -0.36%.
• Britain’s 10-year yield fell two basis points to 0.601%.
• Japan’s 10-year yield gained two basis points to -0.017%.

Commodities

• West Texas Intermediate crude gained 0.8% to $51.18 a barrel.
• Brent crude was little changed at $55.30 a barrel.
• Gold increased 0.7% to $1,566.57 an ounce.

Here are some key events coming up:

• German industrial production is due on Friday.
• The U.S. employment report for January is set for Friday release.
• Australia’s central bank chief speaks and takes questions at a parliamentary committee.

U.S. equity futures rose with stocks on Thursday as China’s plans for tariff cuts on American imports added to optimism the global economy will weather the hit from the coronavirus. Treasuries edged up.

Contracts on the main American equity benchmarks all pointed to a fourth day of gains after China said it will lower levies on $75 billion of U.S. goods next week, likely satisfying part of the interim trade deal. The Stoxx Europe 600 Index climbed to a record high on the back of some strong corporate results. ArcelorMittal SA jumped the most since 2016 after expressing optimism on the outlook for steel demand this year, and Societe Generale SA rose after pledging to boost shareholder returns.

Asian benchmarks advanced, with those in Japan rising more than 2% as Toyota Motor Corp. reported a higher-than-expected quarterly profit. A gauge of European credit risk hit its lowest since 2007, while the euro held steady even as data showed German factory orders fell at their fastest pace in more than a decade.

The latest trade developments have further boosted investor optimism after several reports on possible vaccines for the virus on Wednesday, though the World Health Organization later said there are no proven therapeutics. While some warn of complacency as a gauge of global stocks inches toward a record, others flag support from policy makers, and recent indicators showing the trajectory of growth was solid before the virus struck.

“Companies are going to continue to struggle in the short term” with disruptions and forgone business due to the virus, said Joe Zidle, chief investment strategist at Blackstone Group Inc. But China’s moves in recent days to reopen markets and inject stimulus “gave global investors a degree of confidence that the Chinese policy makers had at least taken the worst-case scenario off the table,” he said.