U.S. Futures Rise With Europe Stocks; Euro Climbs: Markets Wrap - Yahoo Canada Finance

U.S. Futures Rise With Europe Stocks; Euro Climbs: Markets Wrap

(Bloomberg) -- U.S. equity futures and European stocks advanced as investors focused on progress in reopening economies and on the European Union’s final touches to its fiscal-stimulus proposal. The common currency strengthened, while Treasuries slipped.

Contracts on the three main American equity gauges pointed to a firm opening on Wall Street as some of the stocks most punished by the coronavirus, from Carnival Corp. to United Airlines, jumped in the premarket. The Stoxx Europe 600 Index headed toward its third daily increase and Italy’s government bonds rose after an official confirmed the European Commission’s package of grants and loans would total up to 750 billion euros ($823 billion), in an unprecedented push to overcome the region’s deepest recession in living memory.

Meanwhile, Asian stocks closed mixed in wake of the latest Sino-American flare-up, and China’s yuan slipped, nearing its weakest level on record against the dollar. WTI crude oil was steady at about $34 a barrel in New York.

Investors are taking the new U.S.-China friction in stride, including possible sanctions over Beijing’s crackdown in Hong Kong, as they drive global stocks to levels not seen since early March on hopes that economies are beginning to recuperate after a deep downturn. The EU’s long-anticipated blueprint will be presented later Wednesday.

The recent equity rally “is an indication that investors are getting optimistic about the reopening of the economy and the drug-treatment development,” Katerina Simonetti, senior portfolio manager at UBS Private Wealth, said on Bloomberg TV. “We hope that it will eventually lead to a normalization in the market, but we have to keep an eye on the re-emergence of virus cases.”

Elsewhere, Japanese equities advanced after Bloomberg reported that the Abe administration is compiling a new 117 trillion yen ($1.1 trillion) stimulus package. Shares in Hong Kong and Shanghai fell.

Here are some key events coming up:

Thursday brings the U.S. jobless claims reading for the week ended May 23.Federal Reserve Chairman Jerome Powell participates in a virtual discussion on Friday.Euro-area data due Friday is forecast to show consumer inflation fell to 0.1% on May from 0.4% the previous month.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index gained 1.2% as of 7:25 a.m. New York time.The Stoxx Europe 600 Index increased 0.7%.Germany’s DAX Index advanced 1.9%.The MSCI Asia Pacific Index climbed 0.3%.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1%.The euro advanced 0.3% to $1.1018.The Japanese yen weakened 0.2% to 107.77 per dollar.The British pound dipped 0.1% to $1.2321.

Bonds

The yield on 10-year Treasuries gained two basis points to 0.71%.Germany’s 10-year yield gained four basis points to -0.39%.Britain’s 10-year yield climbed less than one basis point to 0.219%.

Commodities

West Texas Intermediate crude dipped 1.3% to $33.90 a barrel.Gold weakened 0.2% to $1,706.46 an ounce.

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2020-05-27 11:30:00Z
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