(Bloomberg) — U.S. equity futures climbed with stocks on Monday as major economies showed further signs of re-opening and the Fed stressed it has more ammunition to combat a downturn. Crude oil advanced.
S&P 500 contracts jumped as much as 1.8% after the underlying gauge’s worst week since mid-March. The move came in the wake of news that California’s economy is now 75% open after virus restrictions were eased. Apple Inc. said it will open more than 25 U.S. stores this week, adding to almost 100 globally. The Stoxx Europe 600 Index rose on gains in mining and travel shares, including airlines IAG SA and Ryanair Holdings Plc. Stock indexes in Japan, Hong Kong and South Korea all posted modest advances.
Gold traded at its highest price in seven years, while West Texas oil rose above $30 a barrel for the first time in two months as producers in the U.S. and elsewhere continued to cut activity. Gilts rose as traders bet the Bank of England will take its benchmark interest rate below zero in December.
Investors begin a new week seemingly cheered by hopes for a rebound and looking past data that paints a stark picture of the coronavirus’s damage. While Federal Reserve Chairman Jerome Powell said the U.S. economy’s recovery could stretch to the end of 2021, he added that policy makers are “not out of ammunition by a long shot.” Several European countries ended bans on short selling, as they continued to report the lowest number of daily deaths from the virus since March.
“With the worst of the pandemic likely behind us, central bank supported equity markets are unlikely to re-test their lows,” said Seema Shah, chief strategist at Principal Global Investors. “Yet, while reopening momentum may well carry risk assets a bit higher over the near term, the tepid economic recovery and deep uncertainty over the virus outlook argue against a pivot to more risk-on positioning.”
Elsewhere, industrial metals climbed after China announced guidelines to revive large infrastructure projects. Currencies of ore and crude oil exporters strengthened, from Norway’s krone to the Australian dollar.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index rose 1.6% as of 6:43 a.m. New York time.Nasdaq 100 Index futures increased 1.3%.The Stoxx Europe 600 Index jumped 2%.The MSCI Asia Pacific Index rose 0.1%.
Currencies
The Bloomberg Dollar Spot Index decreased 0.1%.The euro was little changed at $1.0816.The British pound gained 0.2% to $1.2139.The Japanese yen weakened 0.2% to 107.25 per dollar.The Mexican peso strengthened 0.7% to 23.7849 per dollar.
Bonds
The yield on 10-year Treasuries rose less than one basis point to 0.65%.Germany’s 10-year yield decreased one basis point to -0.54%.Britain’s 10-year yield dipped two basis points to 0.21%.Portugal’s 10-year yield declined four basis points to 0.841%.
Commodities
West Texas Intermediate crude increased 8.4% to $31.89 a barrel.Gold strengthened 1.1% to $1,762.97 an ounce.Iron ore surged 3.5% to $93.71 per metric ton.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For more articles like this, please visit us at bloomberg.com” data-reactid=”38″>For more articles like this, please visit us at bloomberg.com
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Subscribe now to stay ahead with the most trusted business news source.” data-reactid=”39″>Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
