U.S. equity futures jumped with European stocks after a brutal sell-off in Chinese equities halted on Tuesday and as investors gauged the latest efforts to contain the deadly coronavirus. Commodities rallied, from crude oil to coffee.
Contracts on the three main U.S. stock indexes each advanced more than 1%. The Stoxx Europe 600 Index’s jump was led by mining and energy shares as 18 of 19 industry sectors rose. BP Plc was among the biggest gainers after an earnings beat. Equities rebounded from Shanghai and Hong Kong to Seoul and Taipei in the wake of a record $720 billion wipeout in China on Monday.
Treasuries slipped with gold. The offshore yuan recouped the previous session’s decline while the yen weakened. West Texas oil rose after a four-day retreat. A gauge of the dollar held most of its Monday gain, the biggest since September.
Investors are weighing China travel restrictions and business shut-downs alongside measures Beijing is introducing to support growth as the hit to the country’s economy mounts. Hong Kong reported a death from the coronavirus, confirming the second fatality outside mainland China, while Singapore had its first instance of local transmission. Macau asked casinos in the world’s biggest gaming hub to shut for half a month to curb the spread.
Elsewhere, Australia’s dollar climbed after the central bank highlighted the impact of past interest-rate cuts, while saying it’s too early to tell what the duration of the effect from the coronavirus will be.
Meanwhile, traders are also waiting for the outcome of the Iowa Caucuses, as the 2020 Democratic presidential race kicks off. Problems with the reporting process have delayed the results.
Here are some key events coming up:
- The U.S. Democratic Party of Iowa on Tuesday will release results from caucuses, the opening event of its nomination race for the presidency.
- Euro-zone PMI data in its final version will be released Wednesday.
- The Reserve Bank of India’s interest rate decision is due Thursday.
- The U.S. employment report for January is set for Friday release.
These are the main moves in markets:
Stocks
- The Stoxx Europe 600 Index surged 1% as of 10:34 a.m. London time.
- Futures on the S&P 500 Index rose 1.1%.
- Nasdaq 100 Index futures jumped 1.2%.
- The MSCI All-Country World Index rose 0.4%.
- The MSCI Asia Pacific Index surged 1.1%.
Currencies
- The Bloomberg Dollar Spot Index fell 0.1%.
- The British pound climbed 0.1% to $1.3008.
- The euro dipped 0.1% to $1.1051.
- The Japanese yen weakened 0.3% to 109.03 per dollar.
- The offshore yuan strengthened 0.2% to 6.9966 per dollar.
Bonds
- The yield on 10-year Treasuries climbed five basis points to 1.58%.
- Germany’s 10-year yield rose three basis points to -0.41%.
- Britain’s 10-year yield gained four basis points to 0.555%.
Commodities
- West Texas Intermediate crude surged 1.5% to $50.87 a barrel.
- Gold weakened 0.4% to $1,570.46 an ounce.
- LME copper surged 2.4% to $5,658 per metric ton.
– BLOOMBERG