Markets have fluctuated between hope and despair as the continued spread of the coronavirus undermines economic recovery and boosts supply-shock inflation, even as central banks reaffirm an accommodative stance.
Bloomberg: U.S. index futures rose and global stocks rebounded as investor concerns eased about stimulus tapering by central banks and China’s regulatory crackdown.
December contracts on the S&P 500 gained 0.4% after the equity benchmark posted the longest run of losses since June. Affirm Holdings Inc. surged 24% in premarket trading after revenue beat estimates. Treasury yields rose as the benchmark 10-year rate added three basis points, while the dollar was little changed against major peers after paring an advance.
Markets have fluctuated between hope and despair as the continued spread of the coronavirus undermines economic recovery and boosts supply-shock inflation, even as central banks reaffirm an accommodative stance. The U.S. equity benchmark is heading for the biggest weekly slide since July 16, threatening to make September the first loss-making month since January.
“Even though we are seeing a slowing in growth momentum, the slowing is happening to a pace of growth that’s going to be stellar,” Thushka Jeannequin, a global strategist at JPMorgan Asset Management said on Bloomberg TV. “They have financial conditions that are extremely easy. We remain pro-risk.”
Europe’s Stoxx 600 gauge trimmed weekly losses, advancing for the first time in four days after the region’s policy makers clarified they’re calibrating but not tapering emergency support. Nordic Semiconductor ASA added as much as 2.9% after Deutsche Bank AG raised its price target.
A Hong Kong gauge of Chinese technology companies jumped 2.9% in the wake of a clarification by a newspaper that China has slowed rather than frozen new game approvals.
Traders were also evaluating a telephone call between President Joe Biden and China’s Xi Jinping to see if the increasingly adversarial relationship between the two sides could be repaired. The Shanghai Composite Index climbed to a six-year high.
Oil rose, with investors shrugging off China’s confirmation that it has released crude from its strategic reserves. Bitcoin fluctuated between gains and losses.
Some of the main moves in markets:
Futures on the S&P 500 rose 0.4% as of 7:03 a.m. New York time
Futures on the Nasdaq 100 rose 0.4%
Futures on the Dow Jones Industrial Average rose 0.5%
The Stoxx Europe 600 rose 0.3%
The MSCI World index rose 0.3%
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.1831
The British pound rose 0.3% to $1.3874
The Japanese yen fell 0.2% to 109.92 per dollar
The yield on 10-year Treasuries advanced three basis points to 1.32%
Germany’s 10-year yield advanced two basis points to -0.34%
Britain’s 10-year yield was little changed at 0.74%
West Texas Intermediate crude rose 1.7% to $69.28 a barrel
Gold futures fell 0.3% to $1,794.70 an ounce