U.S. Futures Rally With Stocks While Bonds Retreat: Markets Wrap

Stocks

• Futures on the S&P 500 Index increased 3.23% as of 8:23  a.m. New York time.
• The Stoxx Europe 600 Index climbed 2.9%.
• The MSCI Asia Pacific Index advanced 2.4%.

Currencies

• The Bloomberg Dollar Spot Index declined 0.7%.
• The euro gained 0.8% to $1.0874.
• The British pound climbed 0.5% to $1.2293.
• The Japanese yen advanced 0.1% to 109.11 per dollar.

Bonds

• The yield on 10-year Treasuries increased seven basis points to 0.74%.
• Germany’s 10-year yield climbed six basis points to -0.37%.
• Britain’s 10-year yield advanced one basis point to 0.345%.

Commodities

• West Texas Intermediate crude climbed 3.2% to $26.92 a barrel.
• Gold fell 0.3% to $1,656.81 an ounce.

U.S. equity futures rallied alongside stocks in Europe and Asia on Tuesday amid continuing optimism the spread of the coronavirus may be slowing in several major economies. Bonds extended declines and the dollar weakened.

Contracts for the three main American benchmarks all jumped after the S&P 500 Index on Monday closed at its highest since March 13. If the moves translate to the underlying gauges then the S&P 500 will end the day back in a bull market, and likely take the MSCI All-Country World Index with it. The Stoxx Europe 600 Index also advanced, led by travel and leisure shares, after the rate of new infections slowed in France and in Italy, the original epicenter of the continent’s outbreak.

The dollar retreated the most since late March. The pound strengthened despite concern for Prime Minister Boris Johnson, who was moved into intensive care as he battled the virus. Oil gained on signs the world’s biggest producers are moving toward a deal to call off their price war.

Still, as the economic impact of the measures taken to bring the outbreak under control continue to be felt, many market participants warn against expectations of a sustained rally.

“Optimism on the direction of equity markets will be difficult to maintain until we see more clarity on the corporate earnings outlook and until the dispersion of analysts’ forecasts subsides,” Marija Veitmane, a multi-asset strategist at State Street Global Markets, wrote in a note.