U.S. Futures Drop With Dollar; Treasuries Rise: Markets Wrap - Yahoo Finance

(Bloomberg) -- Wednesday brought another day of reversals in many major markets, with U.S. stock futures dropping, the dollar weakening and Treasury yields falling after surging a day earlier.

Contracts on the S&P 500 Index fell more than 1.5% after the U.S. administration failed to offer details on what President Donald Trump said would be “major” measures to combat the economic impact of the coronavirus. The Stoxx Europe 600 climbed, with all 19 industry sectors in the green, after a nearly 5% rally on Wall Street Tuesday.

Most Asian benchmarks fell, while the yen surged. Crude oil’s rebound from its biggest crash in a generation faltered after Saudi Arabia said it would boost production. The pound fluctuated and gilts declined after the Bank of England cut interest rates.

The BOE’s emergency move came a week after the Federal Reserve slashed its main rate, and as European Central Bank President Christine Lagarde warned of an economic shock similar to the financial crisis unless leaders acts urgently -- comments which suggest the ECB may join the wave of crisis easing when it sets policy on Thursday. The U.K. is expected to unveil an expansionary budget later Wednesday, and Germany and Italy have also announced fiscal support.

“Despite the hopes for fiscal stimulus everywhere, we see significant downside risks,” said Guillaume Tresca, a strategist at Credit Agricole SA in Paris. “As long as uncertainties remain on the number of cases, and central banks’ actions and fiscal stimulus plans are not lifted, we see few reasons for a protracted and long-term rebound.”

Meanwhile, Joe Biden cemented his position as front-runner for the U.S. Democratic presidential nomination with primary victories Tuesday, further easing concerns among those opposing Bernie Sanders’s progressive platform.

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 gained 1.7% as of 9:21 a.m. London time.Futures on the S&P 500 Index fell 1.6%.The MSCI All-Country World Index dipped 0.1%.The U.K.‘s FTSE 100 Index gained 1.2%, the first advance in a week.

Currencies

The Bloomberg Dollar Spot Index dipped 0.2%.The euro rose 0.3% to $1.1318.The British pound gained 0.2% to $1.2943.The Japanese yen strengthened 0.4% to 105.22 per dollar.

Bonds

The yield on 10-year Treasuries fell eight basis points to 0.73%.The yield on two-year Treasuries decreased eight basis points to 0.45%.Germany’s 10-year yield increased four basis points to -0.75%.Britain’s 10-year yield gained five basis points to 0.29%.

Commodities

West Texas Intermediate crude fell 2.4% to $33.54 a barrel.Gold strengthened 0.6% to $1,659.01 an ounce.

--With assistance from Adam Haigh and Winnie Zhu.

To contact the reporter on this story: Robert Brand in Cape Town at rbrand9@bloomberg.net

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

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