Stocks in Europe Asia gain with US futures; dollar slips

Bloomberg

Stocks jumped in Europe and Asia and US equity futures advanced as major economies edged toward reopening, the Bank of Japan boosted stimulus measures and corporate results rolled in. The dollar weakened and oil slumped.
The Stoxx Europe 600 Index opened solidly higher amid a number of positive catalysts and after the gauge missed out on a late Wall Street rally. Data over the weekend showed coronavirus deaths slowed the most in more than a month in Spain, Italy and France, and all three countries have signalled tentative moves to open up their economies. Italian stocks were among the biggest gainers and the nation’s bonds rallied after the country dodged a ratings downgrade. Deutsche Bank AG joined other investment banks in beating first quarter earnings expectations.
The euro and pound strengthened. US futures reversed earlier losses. West Texas oil slumped to trade below $15 a barrel as swelling global crude stockpiles made it more difficult for leading producers to balance the market by curbing output.
The Federal Reserve, BOJ and European Central Bank all announce policy decisions this week as the battle against the pandemic continues and some countries proceed with steps to relax lockdown measures. Several major economies will release GDP numbers, while corporate earnings will keep flooding in, including from Amazon.com Inc., Barclays Plc and Samsung Electronics Co.
“This coming week will be huge from a macro data perspective and the extent to which the global economy has been floored by Covid-19,” said Simon Ballard, chief economist at First Abu Dhabi Bank. “Until we are clearly past the peak of the outbreak, on a global scale, and can feasibly deem the pathogen to be contained and there to be no meaningful risk of a second wave of infection, we believe a defensive investment strategy will remain the most appropriate.”
Meanwhile, Asian shares climbed as Japan’s central bank removed limits on its purchases of government bonds and ramped up its scope for buying corporate debt and commercial paper. The yen strengthened.
Futures on the S&P 500 Index climbed 0.6% as of 8:14 am London time and the Stoxx Europe 600 Index advanced 1.8%. While the MSCI Asia Pacific Index advanced 2%, the MSCI Emerging Market Index advanced 1.6%.
The Bloomberg Dollar Spot Index fell 0.4% and the euro
increased 0.2% to $1.0843.
While the British pound jumped 0.6% to $1.2436, the onshore yuan was little changed at 7.079 per dollar and the Japanese yen strengthened 0.3% to 107.14 per dollar.
The yield on 10-year Treasuries advanced one basis point to 0.61%.
While the yield on two-year Treasuries sank one basis point to 0.22%, Germany’s 10-year yield dipped one basis point to -0.48% and Britain’s 10-year yield decreased one basis point to 0.286%.
Japan’s 10-year yield sank two basis points to -0.037%.
West Texas Intermediate crude declined 13.4% to $14.67 a barrel and Brent crude dipped 5.6% to $20.25 a barrel. Gold also weakened 0.6% to $1,719.93 an ounce.