(Bloomberg) -- Futures on the benchmark U.S. stock gauge turned positive on Wednesday, recovering from a plunge after Iranian missiles struck two American military bases in Iraq. Gold, Treasuries and oil pared earlier out-sized gains as Iran stressed it didn’t seek a war.
Contracts on the S&P 500 erased all losses through the European morning to trade in the green after Donald Trump declared “so far so good” regarding an early damage assessment. The U.S. president plans to make a statement later Wednesday. Boeing Co. shares slipped in pre-market trading after one of its 737s crashed after take-off in Iran, with early assessments suggesting the incident was caused by a technical issue. The Stoxx Europe 600 Index erased most of an earlier decline.
All major Asian equity markets fell earlier. A gauge of high-yield credit risk in Europe rose to the highest in about a month. Gold punched above $1,600 an ounce for the first time since 2013 before the move eased.
Wednesday’s swings mark the latest bout of volatility sparked by U.S.-Iran tensions, as investors try to assess how far the situation will escalate. The nervousness is denting optimism spurred by the improving outlook for global commerce, with a Sino-American trade deal expected to be signed next week. While manufacturing remains weak, job markets are solid across major economies.
The missile attacks “triggered a short period of market volatility overnight but FX and bond moves have largely been reversed,” Kit Juckes, the chief currency strategist at Societe Generale SA in London, wrote in a note. “The consensus view is still that major escalation is unlikely.”
Elsewhere, European bonds were mostly steady after the region’s market for new issues saw investors place orders for three times as much debt as the amount being sold on Tuesday. The euro dropped as German manufacturing orders unexpectedly fell in November.
Read here for more on the ongoing market impact:
Buy the Dip, Wait and See, Add Hedges: Investors on Iran StrikeGlobal Market Reaction to Iran Rocket Attack in Four ChartsGold Surges Above $1,600 as Iran Attacks Spark Flight to HavensAlgos Seize on Iran Headlines to Leave Some Traders With Losses
Here are some events to watch for this week:
President Trump said he would make a statement on Wednesday morning in wake of the Iran attack.Federal Reserve officials Richard Clarida, John Williams, James Bullard and Charles Evans speak on Thursday.The U.S. monthly non-farm employment report is due Friday.
These are moves in major markets:
Stocks
Futures on the S&P 500 Index gained 0.2% as of 6:04 a.m. New York time.The Stoxx Europe 600 Index dipped 0.1%.Japan’s Topix index fell 1.4%.
Currencies
The Bloomberg Dollar Spot Index was little changed.The British pound was unchanged.The euro fell 0.2% to $1.1131.The Japanese yen decreased 0.2% to 108.67 per dollar.The South Korean Won sank 0.4% to 1,170.83 per dollar.
Bonds
The yield on 10-year Treasuries fell one basis point to 1.81%.The yield on two-year Treasuries declined one basis point to 1.53%.Britain’s 10-year yield dipped one basis point to 0.786%.
Commodities
West Texas Intermediate crude gained 0.4% to $62.96 a barrel.Gold gained 0.5% to $1,581.63 an ounce.Iron ore advanced 1% to $93.70 per metric ton.
--With assistance from Christopher Anstey, Cormac Mullen, April Ma, Andreea Papuc and Adam Haigh.
To contact the reporter on this story: Todd White in Madrid at twhite2@bloomberg.net
To contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, Yakob Peterseil
For more articles like this, please visit us at bloomberg.com
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https://finance.yahoo.com/news/asia-stock-futures-mixed-p-214037773.html
2020-01-08 10:17:00Z
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