Stocks, Futures Gain on Improving Trump Outlook: Markets Wrap


(Bloomberg) — Asian stocks climbed with U.S. and European futures as traders reacted to the possibility President Donald Trump may be able to leave hospital as soon as Monday. The yen retreated and Treasuries were steady.

Shares jumped in Japan, Hong Kong, South Korea and Australia, where volumes were lower than normal because of a holiday. S&P 500 futures climbed after U.S. equities finished lower on Friday in a volatile day for global financial markets.

Crude oil pared some of Friday’s slump. The pound fluctuated following a weekend call between U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen on Brexit. The dollar slipped.



a screen shot of a chain link fence: October VIX futures jumped after Donald Trump tested positive for Covid-19


© Bloomberg
October VIX futures jumped after Donald Trump tested positive for Covid-19

A member of Trump’s medical team said Sunday that the president could be released from hospital as soon as Monday after treatment for Covid-19. But Trump’s condition remains clouded by confusion, with the president’s effort to show strength contradicted by conflicting accounts from his doctors.

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While the president’s positive Covid-19 test will dominate the headlines for some time, “for now the market appears to be cheered by Trump’s overall treatment and recovery,” Commerzbank AG strategists including Charlie Lay wrote in a note.

On the stimulus front, Trump tweeted from hospital that a deal needs to get done. Nancy Pelosi was optimistic on Friday that a bipartisan stimulus bill can be done, and said his diagnosis “kind of changes the dynamic.”

Meanwhile, a new Wall Street Journal/NBC News poll taken after Tuesday’s debate but before the president’s diagnosis was announced showed Joe Biden leading Trump by 14 percentage points.

Elsewhere, New York plans to crack down on coronavirus hot spots as cases surge, while the French government is said to be looking at further restrictions in Paris.

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Here are some key events coming up:

The Reserve Bank of Australia is forecast to keep interest rates and its three-year yield target unchanged at 0.25% on TuesdayAlso Tuesday, Fed Chair Jerome Powell and ECB Chief Economist Philip Lane deliver keynote addresses at the NABE conferenceOn Wednesday, the minutes of the Sept. 15-16 meeting of the FOMC could be especially fruitful for Fed watchers, beginning with details of the debate on conditions necessary to trigger a rate increaseThe U.S. Vice Presidential debate takes place in Salt Lake City on WednesdayThough the final formal round of talks is over, the British government expects trade negotiations to continue up to the EU summit in mid-October.

These are the main moves in markets:

Stocks

S&P 500 futures rose 0.7% as of 6:58 a.m. in London. The S&P 500 Index fell 1% Friday.Japan’s Topix Index rose 1.7%.Australia’s S&P/ASX 200 climbed 2.6%.South Korea’s Kospi rose 1.5%.Hang Seng Index rose 1.7%.Euro Stoxx 50 futures advanced 0.8%

Currencies

The Bloomberg Dollar Spot Index fell 0.2%.The yen fell 0.3% to 105.57 per dollar.The euro rose 0.2% to $1.1735.The British pound was little changed at $1.2934.

Bonds

The yield on 10-year Treasuries was at 0.70%.

Commodities

West Texas Intermediate crude futures rose 2.7% to $38.06 a barrel after sinking 4.3% Friday.Gold fell 0.4% to about $1,892 an ounce.

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