U.S. Stocks: S&P 500 futures gain on improving Trump outlook

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Updated: Oct 05, 2020 10:43 AM

S&P 500 futures climbed after U.S. stocks finished lower on Friday in a volatile day for global financial markets.

Share Market Today, Share Market LiveBarring Nifty FMCG index and Nifty Media index, all the sectoral indices ended in the green. Nifty IT and Nifty Pharma were to sectoral gainers

Bloomberg: Asian stocks climbed with U.S. futures as traders reacted to the possibility President Donald Trump may be able to leave hospital as soon as Monday. The yen retreated and Treasuries dipped.

Shares saw strong gains in Japan, Hong Kong and Australia, where markets are open though volumes are expected to be low because of a holiday. South Korean stocks saw a more modest rise. S&P 500 futures climbed after U.S. stocks finished lower on Friday in a volatile day for global financial markets.

Crude oil pared some of Friday’s slump. The pound fluctuated following a weekend call between U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen on Brexit. The dollar slipped.

Investors are mulling a series of contradictory and confusing accounts about Trump’s coronavirus infection, the latest being his physician admitting to giving a misleading statement about the president receiving oxygen. Still, doctors on Sunday insisted that Trump is doing well and could be discharged as soon as Monday.

While the president’s positive Covid-19 test will dominate the headlines for some time, “for now the market appears to be cheered by Trump’s overall treatment and recovery,” Commerzbank AG strategists including Charlie Lay wrote in a note.

On the stimulus front, Trump tweeted from hospital that a deal needs to get done. Nancy Pelosi was optimistic on Friday that a bipartisan stimulus bill can be done, and said his diagnosis “kind of changes the dynamic.”

Meanwhile, a new Wall Street Journal/NBC News poll taken after Tuesday’s debate but before the president’s diagnosis was announced showed Joe Biden leading Trump by 14 percentage points.

Elsewhere, New York plans to crack down on coronavirus hot spots as cases surge, while the French government is said to be looking at further restrictions in Paris.

Here are some key events coming up:

  1. The Reserve Bank of Australia is forecast to keep interest rates and its three-year yield target unchanged at 0.25% on Tuesday
  2. Also Tuesday, Fed Chair Jerome Powell and ECB Chief Economist Philip Lane deliver keynote addresses at the NABE conference
  3. On Wednesday, the minutes of the Sept. 15-16 meeting of the FOMC could be especially fruitful for Fed watchers, beginning with details of the debate on conditions necessary to trigger a rate increase
  4. The U.S. Vice Presidential debate takes place in Salt Lake City on Wednesday
  5. Though the final formal round of talks is over, the British government expects trade negotiations to continue up to the EU summit in mid-October.

These are the main moves in markets:

Stocks

S&P 500 futures rose 0.8% as of 12:05 p.m. in Tokyo. The S&P 500 Index fell 1% Friday.
Japan’s Topix Index rose 1.9%.
Australia’s S&P/ASX 200 climbed 2.4%.
South Korea’s Kospi rose 1.3%.
Hang Seng Index rose 1.5%.

Currencies

The Bloomberg Dollar Spot Index fell 0.2%.
The yen fell 0.2% to 105.54 per dollar.
The euro rose 0.1% to $1.1732.
The British pound was little changed at $1.2947.

Bonds

The yield on 10-year Treasuries rose one basis point to 0.71%.

Commodities

West Texas Intermediate crude futures rose 2.5% to $37.98 a barrel after sinking 4.3% Friday.
Gold was little changed at $1,899 an ounce.

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