Stocks Climb Globally After Halt in China Sell-Off: Markets Wrap - Yahoo Finance

(Bloomberg) -- European stocks climbed with U.S. equity futures after a brutal sell-off in Chinese equities halted on Tuesday, as investors gauged the latest efforts to contain the coronavirus. Treasuries slipped with gold.

The Stoxx Europe 600 Index’s advance was led by mining and chemicals shares as every industry sector rose. BP Plc jumped in early trading after an earnings beat. Equities rebounded from Shanghai and Hong Kong to Seoul and Taipei in the wake of a record $720 billion wipeout in China on Monday. The yuan recouped the previous session’s decline while the yen dipped. West Texas oil rose after a four-day retreat.

A gauge of the dollar held most of its Monday gain, the biggest since September. The pound extended its drop versus the greenback on concern over post-Brexit trade talks between the U.K. and the European Union.

Investors are weighing China travel restrictions and business shut-downs alongside measures Beijing is introducing to support growth as the hit to the country’s economy mounts. The latest death toll from the virus is 425, while the number of cases has risen to more than 20,000. Macau is asking casinos in the world’s biggest gaming hub to shut down for half a month as part of efforts to contain the spread.

Elsewhere, Australia’s dollar climbed after the central bank highlighted the impact of past interest-rate cuts, while saying it’s too early to tell what the duration of the effect from the coronavirus will be.

Meanwhile, traders are also waiting for the outcome of the Iowa Caucuses, as the 2020 Democratic presidential race kicks off. Problems with the reporting process have delayed the results.

Here are some key events coming up:

The U.S. Democratic Party of Iowa on Tuesday will release results from caucuses, the opening event of its nomination race for the presidency.Euro-zone PMI data in its final version will be released Wednesday.The Reserve Bank of India’s interest rate decision is due Thursday.The U.S. employment report for January is set for Friday release.

These are the main moves in markets:

Stocks

The Stoxx Europe 600 Index jumped 0.8% as of 8:18 a.m. London time.Futures on the S&P 500 Index rose 1%.Nasdaq 100 Index futures gained 1%.The MSCI All-Country World Index rose 0.4%.The MSCI Asia Pacific Index surged 1.2%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.1%.The British pound dipped 0.2% to $1.2966.The euro was little changed at $1.1058.The Japanese yen weakened 0.2% to 108.96 per dollar.The offshore yuan strengthened 0.3% to 6.9907 per dollar.

Bonds

The yield on 10-year Treasuries increased three basis points to 1.56%.Germany’s 10-year yield rose two basis points to -0.42%.Britain’s 10-year yield gained three basis points to 0.543%.

Commodities

West Texas Intermediate crude advanced 1% to $50.61 a barrel.Spot gold fell 0.3% to $1,571.31 an ounce.LME copper futures surged 2.4% to $5,659.50 per metric ton.

--With assistance from Ranjeetha Pakiam.

To contact the reporters on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.net;Todd White in Madrid at twhite2@bloomberg.net

To contact the editor responsible for this story: Sam Potter at spotter33@bloomberg.net

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2020-02-04 08:23:00Z
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