-
$2 trillion rescue plan passed by U.S. Senate, sent to House
-
Jobless claims deliver first view of virus’s toll on economy
These are the main moves in markets:
Stocks
- Futures on the S&P 500 Index decreased 1.6% as of 8:31 a.m. New York time.
- The Stoxx Europe 600 Index dipped 1.6%.
- The MSCI Asia Pacific Index advanced 0.4%.
Currencies
- The Bloomberg Dollar Spot Index decreased 0.8%.
- The euro advanced 0.8% to $1.0969.
- The British pound increased 0.9% to $1.1986.
- The Japanese yen advanced 1.3% to 109.79 per dollar.
Bonds
- The yield on 10-year Treasuries dipped seven basis points to 0.80%.
- Germany’s 10-year yield decreased six basis points to -0.32%.
- Britain’s 10-year yield fell three basis points to 0.405%.
Commodities
- Gold was little changed at $1,616.82 an ounce.
- West Texas Intermediate crude decreased 2.4% to $23.90 a barrel.
U.S. stock futures pared losses, while Treasuries fluctuated as investors digested data showing a record number of jobless claims underscored the pandemic’s devastating toll on the economy.
Contracts on the S&P 500 pared losses after jobless claims topped 3 million. Congress is set to pass a $2 trillion stimulus bill to help offset the impact to Americans and businesses.
The claims data is one of the first major reports to show the extent of the damage to the American economy since states around the country began widespread business shutdowns aimed at preventing the coronavirus from spreading.
Stocks were lower around the world before the claims data, as investors started to look past stimulus packages to the mounting human impact of the coronavirus outbreak. The U.S. death toll from the pandemic topped 1,000. Government bonds and the yen advanced.
European sovereign debt rose after the region’s central bank announced it will scrap limits on bond purchases for its emergency program, a landmark decision that gives it almost unlimited firepower to fight the economic fallout from the virus. The euro strengthened as a gauge of the dollar headed for a third day falling.
U.S. and global stocks just posted their first back-to-back gains since before the bear market began, in part thanks to optimism over a $2 trillion rescue plan for the American economy. The Senate has passed the stimulus bill and sent it to the House, which was scheduled to vote on the legislation Friday. But President Donald Trump had urged Congress to act “without delay” and said he would sign it immediately.
The measures across major economies are unprecedented, yet traders remain cognizant of the virus’s escalating toll. The world’s cases now top 451,000 with more than 20,000 deaths.
“Investors need to remain vigilant about how the growth rate of new cases develops and how governments respond going forward,” said Oliver Blackbourn, a multi-asset portfolio manager at Janus Henderson Investors. “The support package should help to assuage the fears about the worst possible economic outcomes for individuals and companies.”
Elsewhere, oil declined after three days of gains. Gold fluctuated. Emerging-market shares and currencies climbed.