Stocks Extend Gains With U.S. Futures; Bonds Drop: Markets Wrap

Stocks Extend Gains With U.S. Futures; Bonds Drop: Markets Wrap(Bloomberg) — Stocks in Europe and Asia gained on Tuesday alongside U.S. equity futures amid continuing optimism the spread of the coronavirus may be slowing in several major economies. Bonds extended declines and the dollar weakened.The Stoxx Europe 600 Index jumped, led by travel and leisure shares, as every major national gauge in the region advanced. Futures for the three main American benchmarks also all climbed after the S&P 500 Index on Monday closed at its highest since March 13. The MSCI Asia Pacific Index rose more than 2% after adding nearly 3% a day earlier.The dollar, a key barometer of funding strains, retreated the most since late March. The pound strengthened despite concern for Prime Minister Boris Johnson, who was moved into intensive care as he battled the virus. Oil gained on signs the world’s biggest producers are moving toward a deal to call off their price war.Riskier assets including stocks and corporate bonds have started the week resuming a remarkable rebound amid the ongoing pandemic. Unprecedented and rapid stimulus by the world’s policy and law makers helped to spur the bounce, which has been given fresh impetus by signs the rate of increase of both the death toll and new infections may be easing.Still, as the economic impact of the measures taken to bring the outbreak under control continue to be felt, many market participants warn against expectations of a sustained rally.“Optimism on the direction of equity markets will be difficult to maintain until we see more clarity on the corporate earnings outlook and until the dispersion of analysts’ forecasts subsides,” Marija Veitmane, a multi-asset strategist at State Street Global Markets, wrote in a note.Elsewhere, Australia’s dollar rallied and bond yields surged after the country’s central bank signaled that markets are functioning well and continued improvement would allow for a scaling back in purchases of government debt. Chinese stocks climbed and the yuan strengthened in the wake of further targeted stimulus by policy makers as Shanghai reopened after a long weekend.These are some of the main moves in markets:StocksFutures on the S&P 500 Index increased 2.5% as of 10:22 a.m. London time.The Stoxx Europe 600 Index advanced 2.1%.The MSCI Asia Pacific Index climbed 2.4%.CurrenciesThe Bloomberg Dollar Spot Index decreased 0.7%.The euro gained 0.7% to $1.0873.The British pound advanced 0.6% to $1.2308.The Japanese yen advanced 0.3% to 108.92 per dollar.BondsThe yield on 10-year Treasuries increased seven basis points to 0.74%.Germany’s 10-year yield climbed six basis points to -0.37%.Britain’s 10-year yield climbed three basis points to 0.359%.CommoditiesWest Texas Intermediate crude climbed 3.6% to $27.03 a barrel.Gold fell 0.4% to $1,654.81 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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