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Bloomberg
US equity futures and European stocks headed for a fifth increase in six sessions, spurring debate over whether the
meltdown has ended given the continued spread of the coronavirus. Treasuries edged higher.
Contracts on the three main American stock indexes turned from losses to gains overnight as political leaders contemplate a fourth round of stimulus.
Battered travel and leisure shares led gains in the Stoxx Europe 600 Index after the World Health Organization said there are signs of some stabilisation in the region’s coronavirus outbreak. Shares traded mixed in Asia, with markets rising in South Korea and Hong Kong as China reported stronger-than-anticipated manufacturing data.
The dollar climbed for a second day against its biggest peers. West Texas crude oil rose after a three-day slump. The yen sank as the end of Japan’s fiscal year brought positioning adjustments. The ruling party proposed the country’s biggest-ever stimulus package worth 60 trillion yen ($554 billion).
Signs of a recovery across equities worldwide are arriving at the end of their worst quarter since 2008. That puts investors at a crossroads, questioning whether extraordinary stimulus by dozens of countries can counter the continued retrenchment of companies and consumers as the outbreak spreads.
New York City, which is emerging as the new epicenter of the pandemic, reported a 16% increase in deaths in
six hours. Italy and the Netherlands are considering extending lockdowns.
“We just don’t know how long the lockdown or stasis of the world economy is going to be,†said Toby Lawson, head of global markets at Societe Generale Securities Australia, told Bloomberg TV. “It would be very premature to say that we’ve seen the bottom.â€
In China, the official purchasing managers’ index rose to 52.0 this month. That’s up from a record low of 35.7 in February and above the 50 mark which signals improving conditions.
Still, China’s bureau of
statistics cautioned that the single-month data didn’t necessarily mean that economy has returned to normal level
amid continuing coronavirus concerns.
Futures on the S&P 500 Index climbed 0.8% in New York. The Stoxx Europe 600 Index increased 2%. The MSCI Asia Pacific Index fell 0.2%.
The Bloomberg Dollar Spot Index climbed 0.4%. The euro declined 0.6% to $1.0979.
The British pound dipped 0.5% to $1.2346. The Japanese yen dipped 0.6% to 108.40 per dollar.
The yield on 10-year Treasuries fell three basis points to 0.70%. Germany’s 10-year yield gained one basis point to -0.48%. Britain’s 10-year yield rose three basis points to 0.366%.
Gold sank 0.9% to $1,607.10 an ounce. West Texas Intermediate crude jumped 6.2% to $21.33 a barrel.