Stocks Advance on Stimulus Hopes; Dollar Weakens: Markets Wrap


(Bloomberg) — European stocks and U.S. futures rose as global markets extended a rally fueled by optimism that American lawmakers will reach a stimulus deal.

The Europe Stoxx 600 Index rose 0.7% and the MSCI Asia Pacific Index notched a fourth day of gains. The S&P 500 jumped 1.7% on Wednesday after a barrage of overnight tweets from President Donald Trump advocating a piecemeal approach and Speaker Nancy Pelosi signaled openness to a standalone airline relief bill.

The dollar weakened, which helped boost commodities including oil and gold. Treasury yields were steady.



graphical user interface: Treasury volatility jumps most in a day since the onset of Covid turmoil in U.S.


© Bloomberg
Treasury volatility jumps most in a day since the onset of Covid turmoil in U.S.

“While the debate on a fiscal stimulus this side of the election rages on, the real question is whether markets are front running a ‘blue wave’ scenario?” Chris Weston, head of research at Pepperstone Financial in Melbourne, wrote in a note, referring to the possibility of Democrats winning the White House as well as the Senate. Another risk is whether “we will see an ugly contested scenario.”

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Minutes of the Federal Open Market Committee’s Sept. 15-16 meeting released Wednesday showed some U.S. central bankers sought further debate on the future of the Federal Reserve’s asset-purchase program, signaling they’d be open to altering or increasing bond-buying going forward.

Meanwhile, countries continue to grapple with rising coronavirus infections. France reported a record number of new cases and Italy’s infections spiked to the highest since April.

Regeneron shares gained 3.5% in late trading in New York after President Donald Trump said its an antibody cocktail was was the “key” to his quick recovery. Trump said he would authorize its emergency use.

Elsewhere in markets, crop futures are climbing as dry weather threatens planting in the Americas and Black Sea areas. Wheat has risen for five days and is trading near the highest level since 2015.

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 Index increased 0.7% as of 8:10 a.m. London time.The Stoxx Europe 600 Index rose 0.6%.The MSCI Asia Pacific Index climbed 0.6%.The MSCI Emerging Market Index gained 0.5%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.2% to 1,170.15.The euro rose 0.1% to $1.1773.The British pound increased 0.2% to $1.2949.The Japanese yen was unchanged at 105.98 per dollar.

Bonds

The yield on 10-year Treasuries dipped two basis points to 0.77%.The yield on two-year Treasuries gained less than one basis point to 0.15%.Germany’s 10-year yield rose one basis point to -0.50%.Britain’s 10-year yield climbed one basis point to 0.3%.

Commodities

West Texas Intermediate crude increased 0.6% to $40.30 a barrel.Gold strengthened 0.3% to $1,893.20 an ounce.LME copper declined 0.2% to $6,645 per metric ton.

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