US, European futures up with lockdowns easing; oil rises

Bloomberg

US and European futures rose along with Asian stocks, as a number of economies move toward easing lockdowns. Crude oil gained for a fifth consecutive day.
S&P 500 futures climbed after the index staged a turnaround late Monday to end firmer as California sounded a note of optimism in its fight against the virus. Stocks outperformed in Australia and Hong Kong was up even after a record drop in GDP. Markets were closed in Japan, China and South Korea. The Aussie held gains after the Reserve Bank of Australia left policy settings unchanged.
Stocks fall worldwide for third straight day, longest streak in two months Global stocks remain on shaky ground as US-China discord flared again. Investors are weighing fears of a second wave of infections and a steady stream of bad economic data against efforts by many countries to start easing lockdown restrictions.
“The market is really riding on these reopening expectations,” Jingyi Pan, IG Asia Market Strategist, said on Bloomberg TV. Yet “feedback from the economic data is unlikely to show signs of improvement at least until Q3,” and IG Asia is advising clients to position more defensively, she said.
As global deaths from the pandemic topped 251,000, California, the first state to shut down its economy over Covid-19, will start loosening its lockdown on Friday. Italy began to reopen its economy after two months, but the premier’s plan was criticized for being too cautious. Spain started to relax its lockdown regime after weeks of confinement. Hong Kong’s leader said the city may relax virus restrictions “soon.”
Earnings roll on this week, with firms including Walt Disney Co., BMW, and Air France-KLM scheduled to report.
Friday brings the US jobs report for April, expected to show a severe impact from the pandemic. The median forecast in a Bloomberg survey of economists calls for a 21 million plunge in payrolls.
S&P 500 futures gained 0.8% as of 6:57 am in London. The S&P 500 Index gained 0.4% and Euro Stoxx 50 futures gained 1.5%. While Australia’s S&P/ASX 200 Index rose 1.6%, Hong Kong’s Hang Seng Index rose 0.8%.
The Japanese yen was at 106.62 per dollar, up 0.1% and the euro was little changed at $1.0908. While the British pound traded at around $1.2469, up 0.2%, China’s offshore yuan was up 0.2% at 7.1193 per dollar.
The yield on 10-year Treasuries gained two basis points Monday, to 0.63% and Australia’s 10-year bond yield rose about four basis points to 0.87%.
While West Texas Intermediate crude rose 7% to $21.84 a barrel, gold was flat at $1,703 an ounce.