Stocks Rally Globally After Halt in China Sell-Off: Markets Wrap - Yahoo Finance

Stocks Rally Globally After Halt in China Sell-Off: Markets Wrap - Yahoo Finance

(Bloomberg) -- U.S. equity futures jumped with European stocks on Tuesday after a sell-off in Chinese shares ended and as investors weighed the latest efforts to contain fallout from the coronavirus epidemic. Commodities rallied, from crude oil to coffee.

Contracts on the three main U.S. stock indexes each advanced more than 1%. Tesla Inc. soared, suggesting its parabolic week will continue when Wall Street trading begins. Mining and energy shares led a jump in the Stoxx Europe 600 Index after BP Plc’s earnings beat and as West Texas oil ended a four-day losing streak.

Earlier on Tuesday, equities rebounded from Shanghai and Hong Kong to Seoul and Taipei in the wake of Monday’s record $720 billion wipeout in China. The offshore yuan recouped the previous session’s decline while the yen weakened. Treasuries slipped with gold. A dollar gauge edged lower after gaining the most since September on Monday.

Investors appear to be taking some comfort from the measures Beijing is introducing to support economic growth, even as travel restrictions continue in China and business shut-downs mount. The U.K. government asked its citizens to leave the country, hours after Hong Kong reported a death from the coronavirus, confirming the second fatality outside mainland China. Singapore had its first instance of local transmission, while Macau is shutting casinos temporarily in the world’s largest gambling hub.

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.

Elsewhere, an MSCI gauge of emerging-market stocks headed for its best performance in a year. A benchmark of developing-country currencies also jumped.

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 1.3% as of 8:21 a.m. New York time.Futures on the S&P 500 Index jumped 1.3%.Nasdaq 100 Index futures leaped 1.5%.The MSCI All-Country World Index rose 0.5%.The MSCI Asia Pacific Index surged 1.2%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.1%.The British pound gained 0.2% to $1.302.The euro dipped 0.1% to $1.105.The Japanese yen weakened 0.4% to 109.08 per dollar.The offshore yuan strengthened 0.3% to 6.9944 per dollar.

Bonds

The yield on 10-year Treasuries gained five basis points to 1.58%.Germany’s 10-year yield climbed three basis points to -0.41%.Britain’s 10-year yield rose four basis points to 0.548%.

Commodities

West Texas Intermediate crude jumped 2.3% to $51.27 a barrel.Gold weakened 0.6% to $1,566.82 an ounce.LME copper surged 2.2% to $5,648 per metric ton.Arabica coffee surged 1.7% to $1 a pound.

--With assistance from Ranjeetha Pakiam, Andreea Papuc and Ziad Daoud (Economist).

To contact the reporter on this story: Todd White in Madrid at twhite2@bloomberg.net

To contact the editor responsible for this story: Sam Potter at spotter33@bloomberg.net

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2020-02-04 12:28:00Z
https://finance.yahoo.com/news/asian-stocks-set-mixed-start-215610911.html

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