Stocks Advance After Biggest Rout Since Crisis: Markets Wrap - Yahoo Finance

Stocks Advance After Biggest Rout Since Crisis: Markets Wrap

(Bloomberg) -- Stocks climbed globally along with U.S. index futures on Tuesday, recovering some ground after the deepest equity rout since the great financial crisis. Bonds and haven currencies trimmed their exceptional gains from a day earlier and the dollar strengthened.

The Stoxx Europe 600 Index jumped alongside contracts on the three main American gauges, though few benchmarks came close to recovering their historic losses from Monday. The twin worries of a price war in the oil market and worsening coronavirus outbreak remain front and center for investors.

Equities rose across Asia, with those in Japan closing in the green after earlier sliding more than 4%. Brent crude futures clung to gains of around 5% after crashing on Monday. The yen slid alongside the Swiss franc. Ten-year Treasury yields retraced more than half of yesterday’s tumble.

Investors watched S&P 500 futures briefly slip to 20% below their high -- signaling a bear market -- only for them to reverse after President Donald Trump said his administration will discuss a possible payroll tax cut with Congress, and that there will be “major” economic announcements Tuesday. Treasury Secretary Steven Mnuchin rejected comparisons with the financial crisis.

Measures to contain the coronavirus continue to undermine prospects for corporate earnings, and raise the danger of a funding crisis, while the oil price crash threatens a swath of defaults among producers. Italy added nationwide travel restrictions to its effective lockdown of the northern region of the country.

“While things feel like the end-of-days I’d stay risk averse in the near-term, but expect bear market rallies,” Chris Weston, head of research at Pepperstone Group, said.

Here are some key events coming up:

The European Central Bank’s policy decision comes Thursday amid expectations it may ease policy.The U.K. Chancellor of the Exchequer unveils the government’s 2020 budget on Wednesday.The U.S. core consumer price index, due Wednesday, is expected to remain subdued in February.

These are the main moves in markets:

Stocks

The Stoxx Europe 600 Index surged 3.1% as of 9:24 a.m. London time.Futures on the S&P 500 Index jumped 4%.The MSCI Asia Pacific Index advanced 0.5%.The MSCI All-Country World Index climbed 0.6%.

Currencies

The Bloomberg Dollar Spot Index climbed 0.5%.The euro sank 0.8% to $1.1362.The British pound fell 0.5% to $1.3057.The Japanese yen weakened 2.1% to 104.54 per dollar.

Bonds

The yield on 10-year Treasuries jumped 17 basis points to 0.71%.The yield on two-year Treasuries climbed 10 basis points to 0.48%.Germany’s 10-year yield jumped 12 basis points to -0.74%.Japan’s 10-year yield advanced 12 basis points to -0.048%.

Commodities

Brent crude jumped 5.1% to $36.10 a barrel.Gold weakened 1.1% to $1,662.23 an ounce.LME zinc climbed 1.7% to $2,013 per metric ton.Iron ore surged 4.4% to $88.75 per metric ton.

--With assistance from Vildana Hajric and Andreea Papuc.

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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2020-03-10 09:31:00Z
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