(Bloomberg) -- European stocks surged and U.S. equity futures turned higher as expectations grow that policy makers and governments will act to guard against the economic threat of the coronavirus. Treasuries extended a rally as the number of infections continued to grow.
Futures on the S&P 500 Index fluctuated for much of the trading session in Asia after the underlying gauge climbed the most since December 2018 on Monday. They found some momentum through the European morning as the Stoxx Europe 600 Index rallied, with every sector in that region jumping.
The main focus of the day looks set to be a teleconference between G-7 finance chiefs about the coronavirus. Earlier, President Donald Trump said the Fed “should ease and cut rate big” after Australia lowered its benchmark by a quarter percentage point Tuesday. Treasuries hit another record and Asian stocks pared a gain after a report suggested the G-7 would stop short of specifying monetary and fiscal moves. The yen and gold strengthened.
Policy makers and governments are being stirred into action amid signs of mounting damage to the global economy from the spread of the coronavirus. The OECD has warned that growth will sink to levels not seen in more than a decade, manufacturing contracted in February by the most since 2009, and ever more bushinesses are warning about the impact of the illness.
“Markets will have to decide if the promise of concerted and possibly co-ordinated action from fiscal and monetary authorities will be enough,” said James Athey, senior investment manager at Aberdeen Standard Investments. “For most shocks you would probably say yes, but the scale, magnitude and sheer unknowable nature of this one makes that an open question.”
Elsewhere, Australia’s dollar rose even after the central bank cut its benchmark rate by a quarter point, underscoring how traders’ expectations have rapidly shifted in recent days. The Reserve Bank of Australia, in its policy statement, noted that expectations are for further monetary stimulus by most economies in coming months, including the U.S.
Here are some key events coming up:
U.S. citizens in states including California and Texas will vote on “Super Tuesday” for a Democratic candidate to run against President Donald Trump in November’s election.The Bank of Canada has a rate decision on Wednesday.OPEC ministers gather in Vienna on March 5-6.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index gained 0.5% as of 9:01 a.m. London time.The Stoxx Europe 600 Index surged 2.4%.The U.K.‘s FTSE 100 Index surged 1.9%.The MSCI Asia Pacific Index was little changed.
Currencies
The Bloomberg Dollar Spot Index gained 0.1%.The euro dipped 0.2% to $1.1113.The British pound gained 0.1% to $1.2766.The Japanese yen strengthened 0.3% to 108.04 per dollar.The offshore yuan weakened 0.3% to 6.9837 per dollar.
Bonds
The yield on 10-year Treasuries dipped two basis points to 1.15%.Germany’s 10-year yield jumped two basis points to -0.61%.Britain’s 10-year yield jumped two basis points to 0.43%.
Commodities
Gold strengthened 0.4% to $1,596.41 an ounce.West Texas Intermediate crude gained 1.7% to $47.54 a barrel.
--With assistance from Sophie Caronello and Andreea Papuc.
To contact the reporter on this story: Michael Hunter in London at mhunter72@bloomberg.net
To contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, Ravil Shirodkar
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stocks-gain-policy-support-214746726.html
2020-03-03 09:07:00Z
CBMiTWh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9hc2lhLXN0b2Nrcy1nYWluLXBvbGljeS1zdXBwb3J0LTIxNDc0NjcyNi5odG1s0gFVaHR0cHM6Ly9maW5hbmNlLnlhaG9vLmNvbS9hbXBodG1sL25ld3MvYXNpYS1zdG9ja3MtZ2Fpbi1wb2xpY3ktc3VwcG9ydC0yMTQ3NDY3MjYuaHRtbA
Bagikan Berita Ini
0 Response to "Stocks Rally With Futures While Treasuries Edge Up: Markets Wrap - Yahoo Finance"
Post a Comment