Stocks in China Slide; U.S. Equity Futures Advance: Markets Wrap - Yahoo Finance

(Bloomberg) -- U.S. equity futures power higher and European stocks were steady as investors took in stride a sell-off in Asia, where Chinese shares plunged as markets there reopened amid the worsening coronavirus outbreak. Treasuries and gold declined.

Contracts on the three main American equity indexes all advanced in the wake of Friday’s drop. Gains in technology and travel shares offset declines for miners in the Stoxx Europe 600 Index, as support measures from China’s government helped stem losses in other markets. Stocks in Shanghai fell almost 8%, while local iron ore futures slumped. Equities came off their lows in Tokyo, Seoul and Sydney and fluctuated in Hong Kong.

Oil was little changed, and the offshore yuan weakened to more than 7 per dollar. Copper futures drifted in London trading after dropping for 13 sessions. The deadly outbreak showed no signs of slowing with China’s death toll reaching at least 360.

Investors shifted gears on Monday on the back of turmoil that sent global equities to the worst week since August amid concern economies will falter as the virus spreads. The People’s Bank of China cut rates as it injected cash into the financial system on Monday, part of a slew of measures to shore up their financial markets.

Elsewhere, the pound dipped as investors reacted to a report that U.K. Prime Minister Boris Johnson could walk away from talks over Britain’s future trade relationship with the European Union. Indian bonds surged after the government refrained from announcing higher debt sales in Saturday’s budget and amid plans to allow foreign investors greater access to government securities.

Here are some key events coming up:

The first contest to choose a Democratic nominee to run against Donald Trump in November is the Iowa caucuses Monday.The U.S. manufacturing gauge from the Institute for Supply Management is due Monday. There are also a slew of other PMIs, including India and Brazil.Tuesday brings a policy decision from the Reserve Bank of Australia, and the Reserve Bank of India’s interest rate decision is due Thursday.Friday has the U.S. employment report for January.

These were the main moves in markets:

Stocks

Futures on the S&P 500 Index increased 0.4% as of 8:15 a.m. London time.Nasdaq 100 Index futures gained 0.6%.The Stoxx Europe 600 Index edged up 0.1%.The MSCI All-Country World Index decreased 0.2%.The MSCI Emerging Market Index sank 0.7%.

Currencies

The Bloomberg Dollar Spot Index advanced 0.1%.The British pound dipped 0.4% to $1.3147.The euro dipped 0.1% to $1.1078.The Japanese yen weakened 0.2% to 108.53 per dollar.The offshore yuan depreciated 0.3% to 7.0191 per dollar.

Bonds

The yield on 10-year Treasuries climbed two basis points to 1.53%.Germany’s 10-year yield was steady at -0.44%.Britain’s 10-year yield fell one basis point to 0.518%.

Commodities

West Texas Intermediate crude dipped 0.4% to $51.35 a barrel.Gold slipped 0.7% to $1,577.82 an ounce.LME copper futures climbed 0.6% to $5,600.50 per metric ton.

--With assistance from Haslinda Amin.

To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net;Todd White in Madrid at twhite2@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Yakob Peterseil

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2020-02-03 08:25:00Z
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