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Bloomberg
US equity futures rise after President Donald Trump called for a reduced group of stimulus measures. Euro-area bonds climbed before the region’s central bank president speaks.
Food retailer Tesco Plc jumped when its earnings beat estimates. Ambu A/S surged after the maker of life-support equipment won a key US contract. The Stoxx Europe 600 Index fluctuated as insurers and media companies slid. Bond investors are awaiting European Central Bank President Christine Lagarde’s speech in Paris and Federal Reserve minutes.
Treasuries fall while futures on the S&P 500 recovered some of their tumble after Trump tweeted support for airlines and the Paycheck Protection Program. Those came hours after he jolted markets by ending formal stimulus talks. Asian equities turned higher late in the session.
Volatility picked up this month after Trump contracted the coronavirus and investors were whipsawed by the ups and down of talks on US economic aid. Nasdaq futures had retreated after a House panel proposed a series of far-reaching antitrust reforms to curb the power of technology giants including Amazon.com and
Alphabet Inc.’s Google.
“The market rally thus far had really been driven by this unprecedented stimulus from both central banks and governments globally and a large part of that was from the US,†Emily Weis, a macro strategist at State Street Corp., said on Bloomberg TV. The timeline on more American fiscal stimulus “has now been pushed further back.â€
Meanwhile, with Trump now out of hospital investors continue to monitor the virus’s impact on economic recoveries around the world. Signs are mounting the virus is returning to the New York area, with infections reaching three-month highs. Futures on the S&P 500 Index rose 0.5% as of 9:31 am London time and the Stoxx Europe 600 Index decreased 0.1%.
While Germany’s DAX Index dipped 0.2%, the MSCI Asia
Pacific Index gained 0.4%.
The Bloomberg Dollar Spot Index decreased 0.1% and the euro increased 0.2% to $1.1759.
While the Japanese yen weakened 0.3% to 105.91 per dollar, the British pound rises 0.3% to $1.2921.
The yield on 10-year Treasuries gained three basis points to 0.76% and Germany’s 10-year yield dipped one basis point to -0.51% and Britain’s 10-year yield fell less than one basis point to 0.283%.
While West Texas Intermediate crude dipped 1.8% to $39.94 a barrel, gold strengthened 0.8% to $1,892.64 an ounce.