US futures signal a rebound after slump; Asia stocks drop

Bloomberg

US futures are signalling a rebound after the S&P 500 capped its longest slide since September. In other markets, trading was mixed amid lingering worries about tougher lockdowns.
Contracts on the S&P 500 and Nasdaq 100 Index climbed about 0.3 percent, giving a hint of investor optimism after a bruising session on Monday.
Elsewhere in markets, the mood was weaker. Asian stocks slumped, while Europe was little changed. Oil dropped from a nine-month high on concern that virus restrictions will mean less travel. The dollar and the pound were both steady.
Investor optimism about the start of vaccine shots has given way to concern over whether a stimulus bill from a bipartisan group of lawmakers will gain traction. The virus continued to rage in the US, threatening harsher restrictions across the nation. New York City Mayor Bill de Blasio warned that people should be prepared for a full shutdown. European governments are also tightening measures.
“Signs of market fatigue are more prevalent today than a month ago, even as the popular average is near all-time highs,” wrote Paul Nolte, a portfolio manager at Kingsview Investment Management. “The much-awaited correction could come as investors tire of Washington, worry about the Covid cases over the holidays, or some other concern that is likely to pass in a few months.”
Elsewhere, industrial output and retail sales data showed China’s recovery gathered pace in November, putting the economy further ahead of its peers as the only major one likely to expand this year. The nation injected cash into its financial system by offering medium-term loans, in latest effort to ensure banks have sufficient liquidity. The yuan ticked lower.
Meanwhile, President-elect Joe Biden sought to dispel any questions about the legitimacy of his election victory and called on the American people to accept the outcome hours after the Electoral College sealed his win.
Futures on the S&P 500 Index gained 0.3% as of 8:23 am London time and the Stoxx Europe 600 Index was little changed.
While the MSCI Asia Pacific Index decreased 0.5%, the MSCI Emerging Market Index fell 0.3%.
The Bloomberg Dollar Spot Index climbed 0.1% to 1,131.85 and the euro was little changed at $1.2139.
While the British pound decreased 0.1% to $1.3315, the Japanese yen was little changed at 104.08 per dollar.
The yield on 10-year Treasuries was unchanged at 0.89% and the yield on two-year Treasuries was unchanged at 0.12%.
While Germany’s 10-year yield fell less than one basis point to -0.62%, Britain’s 10-year yield decreased one basis point to 0.214%.
West Texas Intermediate crude dipped 0.6% to $46.74 a barrel and gold strengthened 0.8% to $1,842.73 an ounce.