Stocks rally with futures while Treasuries steady

Bloomberg

European stocks surged and US equity futures jumped as expectations grow that policy makers and governments will act to guard against the economic threat of the coronavirus. Treasuries were steady as the number of infections continued to grow.
Futures on the S&P 500 Index had fluctuated at the start of the day after the underlying gauge climbed the most since December 2018 on Monday, but they gained some momentum during the European morning.
The Stoxx Europe 600 Index at one point rose more than 3% as every sector in that region rallied.
The main focus of Tuesday was set to be a teleconference between G-7 finance chiefs about the unfolding coronavirus. Asian stocks pared a gain after a report suggested the group would stop short of specifying monetary and fiscal moves. The yen and gold strengthened.
Policy makers and governments are contemplating action amid signs of mounting damage to the global economy from the spread of the coronavirus. The OECD has said that growth will sink to levels not seen in more than a decade and ever more bushinesses are warning about the impact of the illness. President Donald Trump said on Tuesday the Federal Reserve “should ease and cut rate big.”
“Markets will have to decide if the promise of concerted and possibly co-ordinated action from fiscal and monetary authorities will be enough,” said James Athey, senior investment manager at Aberdeen Standard Investments. “For most shocks you would probably say yes, but the scale, magnitude and sheer unknowable nature of this one makes that an open question.”
The governor of the Bank of England, Mark Carney, said it would take all necessary steps to help the economy. Australia lowered its benchmark by a quarter percentage point. Its currency rose, however, underscoring how traders’ expectations have rapidly shifted in recent days.
Elsewhere, West Texas oil extended recent gains to trade at more than $48 per barrel. Emerging-market shares joined the global rally. The pound looked set to end a four-day losing streak.
US citizens in states including California and Texas will vote on “Super Tuesday” for a Democratic candidate to run against President Donald Trump in
November’s election.
The Bank of Canada has a rate decision on Wednesday.
OPEC ministers gather in Vienna on March 5-6.
Futures on the S&P 500 Index gained 1% in London. The Stoxx Europe 600 Index surged 2.7%. The UK‘s FTSE 100 Index surged 2.2%. The MSCI Asia Pacific Index increased 0.1%.
The Bloomberg Dollar Spot Index declined 0.1%. The euro was little changed at $1.113. The British pound jumped 0.4% to $1.2805. The Japanese yen strengthened 0.4% to 107.92 per dollar. The offshore yuan weakened 0.2% to 6.9787 per dollar.
The yield on 10-year Treasuries increased less than one basis point to 1.17%. Germany’s 10-year yield jumped five basis points to -0.57%. Britain’s 10-year yield climbed five basis points to 0.457%.
Gold strengthened 0.5% to $1,598.08 an ounce. West Texas Intermediate crude gained 3.2% to $48.26 a barrel.