Equity futures, stocks rally globally after halt in China sell-off
London, UK – US equity futures jumped with European stocks on Tuesday after a sell-off in Chinese shares ended and as investors weighed the latest efforts to contain the deadly coronavirus.
Contracts on the three main US stock indexes each advanced more than 1 per cent. Mining and energy shares led a 1.2 per cent jump in the Stoxx Europe 600 Index after BP Plc’s earnings beat and as West Texas Intermediate oil recovered from a four-day losing streak.
Earlier equities rebounded from Shanghai and Hong Kong to Seoul and Taipei in the wake of Monday’s record US$720bn wipeout in China. The offshore yuan recouped the previous session’s decline while the yen weakened. Treasuries slipped with gold. A dollar gauge edged lower after gaining the most since September on Monday.
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.
Elsewhere, an MSCI gauge of emerging-market stocks headed for its best advance since September. A benchmark of developing-country currencies also surged.
In the currency markets, Bloomberg dollar spot index decreased 0.1 per cent, while British pound gained 0.2 per cent against dollar. The Japanese yen weakened 0.3 per cent to 109.06 per dollar, while offshore yuan strengthened 0.3 per cent to 6.9943 per dollar.
In the currency markets, Bloomberg dollar spot index decreased 0.1%
A woman walks past a stocks board in Hong Kong