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U.S. Futures Climb as Bonds Drop; Dollar Edges Up: Markets Wrap - Yahoo Finance

U.S. Futures Climb, Bonds Slip and Dollar Edges Up: Markets Wrap

(Bloomberg) -- U.S. equity futures advanced with European stocks, helping stabilize markets following the worst Wall Street session since 1987. Treasuries slipped while the dollar edged higher.

S&P 500 contracts reversed an early drop to climb as much as 5%, while the Stoxx Europe 600 Index jumped as various regulators including those in Italy and Spain banned short-selling on some stocks. Roche Holding AG advanced after saying it won emergency approval in the U.S. for a highly automated coronavirus test, potentially speeding up the ability to diagnose patients by a factor of 10. Most Asian benchmarks remained in the red, with investors still worried that emergency fiscal and monetary packages won’t be enough to stave off a global slowdown.

Ten-year Treasuries swung from gains to losses, while sovereign bonds sank across Europe and Asia. Oil pushed higher and the dollar advanced for a fourth day versus a basket of its biggest peers.

Global equities are heading for their worst week since 2008 as investors price in a severely weaker economic outlook due to the coronavirus pandemic. They’re doubting the efficacy of policy responses as cases continue to grow across the world and restrictions on people and businesses crush sentiment. The Bank of Japan on Friday followed an earlier move from the Federal Reserve to inject liquidity, and later offered to buy $1.9 billion of bonds in an unscheduled operation.

“Everyone wants to go to cash,” Kieran Calder, head of equity research for Asia at Union Bancaire Privee, told Bloomberg TV.

New York City has declared a state of emergency, France and Portugal said they will close all schools and a leading U.S. infectious disease official said the testing system in that country is failing. Walt Disney Co. is shutting its Disneyland resort in California from Saturday, following previous closures in Asia.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index gained 3.9% as of 6:30 a.m. New York time.The Stoxx Europe 600 Index jumped 4%.The MSCI Asia Pacific Index dipped 1.9%.The MSCI All-Country World Index climbed 0.5%.

Currencies

The Bloomberg Dollar Spot Index increased 0.1%.The euro dipped 0.2% to $1.1167.The British pound gained 0.4% to $1.2618.The Japanese yen weakened 1.6% to 106.33 per dollar.The Mexican peso strengthened 1.4% to 21.6313 per dollar.

Bonds

The yield on 10-year Treasuries increased five basis points to 0.86%.The yield on two-year Treasuries decreased three basis points to 0.45%.Germany’s 10-year yield gained 10 basis points to -0.64%.Japan’s 10-year yield rose 11 basis points to 0.054%.

Commodities

West Texas Intermediate crude gained 4.9% to $33.05 a barrel.Iron ore increased 1.4% to $88.35 per metric ton.Gold strengthened 0.7% to $1,586.89 an ounce.LME zinc climbed 5.3% to $2,041.50 per metric ton.

--With assistance from Gregor Stuart Hunter, Cormac Mullen and Adam Haigh.

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

For more articles like this, please visit us at bloomberg.com

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https://finance.yahoo.com/news/asia-stocks-set-tumble-wall-220529517.html

2020-03-13 10:34:00Z
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