(Bloomberg) — U.S. and European equity futures gained, Asian shares came off their lows and Australia’s benchmark climbed by a record as some investors took encouragement from strengthening policy stimulus.
It’s the first Monday in four weeks that futures on the S&P 500 Index haven’t gone limit-down in reaction to alarming weekend news. Still, the dollar snapped a four-session losing streak and equities were lower in most Asian markets as caution remains about the course of the coronavirus. Treasuries were flat, while the yen edged up. Oil tumbled again, dropping past $20 a barrel in New York for a time.
In the latest stimulus moves, China’s central bank lowered short-term funding rates and injected cash into its financial system, Australia announced a job-support program and Singapore unveiled a modest easing in policy. For their part, JPMorgan Chase & Co. strategists concluded that most risk asset markets have probably put their worst behind them.
The latest news on the coronavirus itself underlined how, while policy makers the world over have dramatically stepped up their efforts to prevent the health crisis from becoming a financial one, the health situation does continue to deteriorate.
The top American infectious disease expert said deaths from the coronavirus in the world’s largest economy may reach 200,000. Australia limited public gatherings to just two people.
“The assumption that we can turn a switch in a month or two and everything is going to be okay is a faulty opinion,” David Kotok, chief investment officer at Cumberland Advisors Inc., told Bloomberg TV. “We are waiting to see the closer timetable of treatment, testing, and vaccine — that’s very important to us.”
Meantime, emerging currencies including South Africa’s rand and Mexico’s peso tumbled amid concerns about debt downgrades.
Quarter-end strains could add to investor nervousness on Monday and Tuesday as financial firms rein in collateral lending to shore up balance sheets, while Japanese banks face their fiscal year-end. The MSCI gauge of global equities is down about 23% since the start of the year, on course for its worst quarter since the end of 2008.
These are the main moves in markets:
Stocks
Futures on the S&P 500 rose 1%. The S&P 500 fell 3.4% on Friday.Euro Stoxx 50 futures climbed 1.5%.Japan’s Topix index fell 1.6% after tumbling as much as 4.6%.MSCI Asia Pacific Index dipped 0.5%.
Currencies
The yen rose 0.2% to 107.72 per dollar.The offshore yuan dropped 0.3% to 7.1066 per dollar.The euro declined 0.5% to $1.1088.The Bloomberg Dollar Spot Index gained 0.3%, halting four sessions of declines.
Bonds
The yield on 10-year Treasuries was little changed at 0.67%.Australian 10-year yields plunged about 14 basis points to 0.78%.
Commodities
West Texas Intermediate crude retreated 3.5% to $20.76 a barrel.Gold dipped 0.6% to $1,619 an ounce.
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