U.S. Futures Rise; Treasuries Fluctuate With Oil: Markets Wrap
These were the main moves in markets:
Stocks
- Futures on the S&P 500 Index climbed 0.63% as of 8:21 a.m. New York time.
- The Stoxx Europe 600 Index dipped 0.2%.
- Germany’s DAX Index declined 0.5%.
- The MSCI Asia Pacific Index fell 0.7%.
Currencies
- The Bloomberg Dollar Spot Index declined 0.1% to 1,259.70.
- The euro rose 0.2% to $1.0796.
- The British pound climbed 0.2% to $1.2371.
- The Japanese yen was little changed at 107.59 per dollar.
Bonds
- The yield on 10-year Treasuries declined less than one basis point to 0.60%.
- Britain’s 10-year yield declined one basis point to 0.278%.
- Germany’s 10-year yield declined four basis points to -0.47%.
Commodities
- West Texas Intermediate crude gained 3.5% to $17.08 a barrel.
- Brent crude rose 3.6% to $22.09 a barrel.
- Gold strengthened 0.1% to $1,732.91 an ounce.
U.S. equity futures turned higher as investors assessed the latest virus numbers and fresh stimulus measures to limit the economic hit from the coronavirus pandemic. Oil fluctuated.
Futures on the three main American equity gauges pointed to gains on Wall Street after the House overwhelmingly passed and sent to President Donald Trump a $484 billion aid package. Intel Corp. fell in the pre-market after the chipmaker withdrew its full-year sales forecast, citing “significant economic uncertainty” caused by Covid-19. WTI futures hovered around $17 a barrel in New York, after collapsing earlier this week. Treasury 10-year notes erased earlier gains.
Travel and bank shares dragged the Stoxx Europe 600 Index lower after European leaders signed off on a 540 billion-euro ($580 billion) plan tackling the immediate fallout from the pandemic, but failed to come up with a longer-term rebuilding program. Underscoring the challenges, data showed German business confidence fell to record low while virus cases in the region’s biggest economy rose by the most in nearly a week.
U.S. equity futures turned higher as investors assessed the latest virus numbers and fresh stimulus measures to limit the economic hit from the coronavirus pandemic. Oil fluctuated.
Futures on the three main American equity gauges pointed to gains on Wall Street after the House overwhelmingly passed and sent to President Donald Trump a $484 billion aid package. Intel Corp. fell in the pre-market after the chipmaker withdrew its full-year sales forecast, citing “significant economic uncertainty” caused by Covid-19. WTI futures hovered around $17 a barrel in New York, after collapsing earlier this week. Treasury 10-year notes erased earlier gains.
Travel and bank shares dragged the Stoxx Europe 600 Index lower after European leaders signed off on a 540 billion-euro ($580 billion) plan tackling the immediate fallout from the pandemic, but failed to come up with a longer-term rebuilding program. Underscoring the challenges, data showed German business confidence fell to record low while virus cases in the region’s biggest economy rose by the most in nearly a week.
The recent price action in global markets has highlighted the fragility of the risk rally in the face of deteriorating global economic data and weak commodity prices,” Valentin Marinov, the head of G10 FX strategy at Credit Agricole CIB in London, wrote in a note to clients. Still, “the recent global monetary and fiscal stimulus measures have put a ‘floor’ under the risky assets,” he said.
Investors are winding up a volatile week that saw countries report mixed success in curbing the virus while President Trump’s evolving public statements and ad hoc policy swings sparked doubts about his leadership in the crisis. On Wednesday, Trump rebuked the first governor to try to reopen his state economy after encouraging state leaders for weeks to push forward toward resuming a normal social and business life.
In China, there was limited reaction to the central bank’s partial roll-over of maturing medium-term funding to banks, at a lower interest rate.
Japanese bonds rallied after a Nikkei report that the Bank of Japan may replace its government bond-purchase target to allow for unlimited buying.
— With assistance by Haidi Lun, Joanna Ossinger, Garfield Clinton Reynolds, and Adam Haigh