(Bloomberg) --
U.S. equity futures rallied by the most allowed and European stocks jumped as investors caught their breath after the biggest plunge on Wall Street since 1987. Treasuries fell alongside the yen and gold.
S&P 500 futures reached their limit-up after the index plunged 12% Monday, erasing its gain for all of 2019. The Stoxx Europe 600 Index jumped after its lowest close in seven years. Asia saw a volatile session, with Japan’s equity benchmark closing up more than 2% after swinging sharply between gains and losses. A day after a record slump, Australia had its biggest rise since 1997 while Hong Kong and China saw more muted moves. Treasury yields rose after plummeting almost a quarter percentage point Monday.
American stocks slumped into the close Monday after President Donald Trump warned of a possible recession, with economic disruption from the coronavirus potentially extending into summer. In the latest attempts to stem the spread of the virus, Hong Kong was set to issue its second-highest travel alert for residents and extend quarantine measures for people coming from abroad.
Meanwhile, the Philippines became the first country to shut its financial markets, though it aims to reopen Thursday.
“A bear market does not preclude rallies,” said Eleanor Creagh, market strategist at Saxo Capital Markets. “In fact, the biggest rallies can be in bear markets -- erratic swings are exacerbated by the present high-volatility regime and strained liquidity conditions. With VIX remaining significantly above the long-term equilibrium, alarm bells are still sounding and traders should be wary of relief rallies.”
After the Federal Reserve and other central banks dramatically stepped up efforts to stabilize capital markets and liquidity, traders are looking to fiscal authorities for action. While Congress is still working on a package, New Zealand announced a NZ$12.1 billion ($7.3 billion) plan and Australia’s government is preparing to scale up just days after announcing a A$17.6 billion ($10.7 billion) initiative.
Australian bond yields climbed back above 1% as traders continue to rush for cash. Oil traded near $30 a barrel after plunging almost 10% in New York.
To contact the reporters on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.net;Sam Potter in London at spotter33@bloomberg.net
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, ;Sam Potter at spotter33@bloomberg.net, Todd White
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/rout-extend-asia-u-stocks-214832237.html
2020-03-17 08:04:00Z
CBMiR2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9yb3V0LWV4dGVuZC1hc2lhLXUtc3RvY2tzLTIxNDgzMjIzNy5odG1s0gFPaHR0cHM6Ly9maW5hbmNlLnlhaG9vLmNvbS9hbXBodG1sL25ld3Mvcm91dC1leHRlbmQtYXNpYS11LXN0b2Nrcy0yMTQ4MzIyMzcuaHRtbA
Bagikan Berita Ini
0 Response to "U.S. Futures Hit Upper Trading Limit; Bonds Drop: Markets Wrap - Yahoo Finance"
Post a Comment