October 27, 2020

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Stocks Climb, U.S. Futures Rebound After Selloff: Markets Wrap

2 min read

(Bloomberg) — European stocks rose with U.S. equity futures as optimism crept into markets that Tuesday’s tumble drew a line under the recent selloff.

Shares climbed broadly in Europe while AstraZeneca Plc slipped on news it paused trials of a leading experimental Covid-19 vaccine when a participant got sick. S&P 500 and Nasdaq 100 contracts advanced in the wake of large declines in America that were led by tech shares. On Wednesday, computer chip and hardware makers rose in the premarket including Advanced Micro Devices Inc. and Apple Inc.

Treasuries and the dollar erased their increases as equity futures strengthened. The pound headed for its longest declining streak since March on worries that talks could collapse over changes to the Brexit withdrawal deal.

Global investors are grappling with the recent market turbulence, assessing whether the pullback for equities is a sign of market health or the start of a larger drawdown that has further to go. There was a powerful force of resistance across assets from the Nasdaq to gold and even Tesla Inc. shares, with slides halting around their 50-day moving averages.

“We don’t know exactly if this is the bottom, there could be more volatility,” Laila Pence, president of Pence Wealth Management, said on Bloomberg TV. “We’re taking the froth out of the market.”

Elsewhere, crude oil climbed above $40 a barrel in London. Yields on New Zealand’s three-year bonds dropped into negative territory for the first time.

Here are some key events coming up:

The ECB is expected to hold rates steady on Thursday but indicate that downside risks have intensified, suggesting further easing is possible before year-end.The U.S. releases initial jobless claims numbers Thursday.U.S. CPI data is due Friday, with consumer prices expected to have risen in August.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index increased 0.6% as of 9:48 a.m. London time.The Stoxx Europe 600 Index climbed 0.6%.Germany’s DAX Index gained 0.9%.The MSCI Asia Pacific Index fell 1%.

Currencies

The Bloomberg Dollar Spot Index increased 0.1%.The euro declined 0.1% to $1.1767.The Japanese yen was little changed at 105.99 per dollar.The British pound fell 0.3% to $1.2948.

Bonds

The yield on 10-year Treasuries dipped less than one basis point to 0.67%.Germany’s 10-year yield declined one basis point to -0.50%.Britain’s 10-year yield decreased less than one basis point to 0.187%.

Commodities

West Texas Intermediate crude gained 1.9% to $37.47 a barrel.Gold weakened 0.1% to $1,929.67 an ounce.

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2020-09-09 04:54:29


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