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Stocks Stabilize After Biggest Rout Since Crisis: Markets Wrap
(Bloomberg) -- Stocks showed signs of stabilization, and even pockets of a rebound, in Asian trading Tuesday after the deepest equity rout since the global financial crisis.Futures on the S&P 500 Index gained more than 2% after the gauge’s near 8% plunge Monday, and benchmarks rose in Sydney, Hong Kong and Shanghai. Japan advanced after sliding 4% at one point. Crude oil rose over 6%, taking back a slice of Monday’s crash. The yen slid almost 2% and 10-year Treasury yields recouped roughly half of yesterday’s tumble. The Swiss franc jumped the most since July. S&P 500 futures Tuesday briefly traded down 20% from their high -- signaling a bear market -- then gained after President Donald Trump said that the administration will discuss a possible payroll tax cut with Congress, and that there will be “major” economic announcements Tuesday. Treasury Secretary Steven Mnuchin rejected comparisons with the financial crisis.Measures to contain the coronavirus continue to undermine prospects for corporate earnings, and raise the danger of a funding crisis. Making things worse, the crash in oil prices threatens a swathe of defaults in that industry. On the coronavirus front, Italy added nationwide travel restrictions to its effective lockdown of the northern region of the country.“While things feel like the end-of-days I’d stay risk averse in the near-term, but expect bear market rallies,” Chris Weston, head of research at Pepperstone Group, said.Here are some key events coming up:The European Central Bank’s policy decision comes Thursday amid expectations it may ease policy.The U.K. Chancellor of the Exchequer unveils the government’s 2020 budget on Wednesday.The U.S. core consumer price index, due Wednesday, is expected to remain subdued in February.These are the main moves in markets:StocksFutures on the S&P 500 gained 2.6% as of 1:35 p.m. in Tokyo. The S&P 500 Index sank 7.6% to the lowest since June.Topix index was up 1.2%.S&P/ASX 200 Index rose 1.6%.Kospi index fell 0.1%.Hong Kong’s Hang Seng Index was up 1.8%.Shanghai Composite Index rose 0.6%.CurrenciesThe Japanese yen fell 1.7% to 104.17 per dollar.The euro was at $1.1383, down 0.6%. It rose 1.5% Monday.Offshore yuan rose 0.2% to 6.9371 per dollar.Bloomberg Dollar Spot Index rose 0.3%.BondsThe yield on 10-year Treasuries rose 12 basis points to 0.66%.Australia’s 10-year bond yield rose 12 basis points to 0.73%.CommoditiesGold fell 0.9% to $1,665.21 an ounce.West Texas Intermediate rose 6.7% to $33.21 a barrel.\--With assistance from Vildana Hajric.To contact the reporter on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Joanna OssingerFor 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.
https://finance.yahoo.com/news/stock-rout-continue-asia-u-214638253.html?.tsrc=rss
(Bloomberg) -- Stocks showed signs of stabilization, and even pockets of a rebound, in Asian trading Tuesday after the deepest equity rout since the global financial crisis.Futures on the S&P 500 Index gained more than 2% after the gauge’s near 8% plunge Monday, and benchmarks rose in Sydney, Hong Kong and Shanghai. Japan advanced after sliding 4% at one point. Crude oil rose over 6%, taking back a slice of Monday’s crash. The yen slid almost 2% and 10-year Treasury yields recouped roughly half of yesterday’s tumble. The Swiss franc jumped the most since July. S&P 500 futures Tuesday briefly traded down 20% from their high -- signaling a bear market -- then gained after President Donald Trump said that the administration will discuss a possible payroll tax cut with Congress, and that there will be “major” economic announcements Tuesday. Treasury Secretary Steven Mnuchin rejected comparisons with the financial crisis.Measures to contain the coronavirus continue to undermine prospects for corporate earnings, and raise the danger of a funding crisis. Making things worse, the crash in oil prices threatens a swathe of defaults in that industry. On the coronavirus front, Italy added nationwide travel restrictions to its effective lockdown of the northern region of the country.“While things feel like the end-of-days I’d stay risk averse in the near-term, but expect bear market rallies,” Chris Weston, head of research at Pepperstone Group, said.Here are some key events coming up:The European Central Bank’s policy decision comes Thursday amid expectations it may ease policy.The U.K. Chancellor of the Exchequer unveils the government’s 2020 budget on Wednesday.The U.S. core consumer price index, due Wednesday, is expected to remain subdued in February.These are the main moves in markets:StocksFutures on the S&P 500 gained 2.6% as of 1:35 p.m. in Tokyo. The S&P 500 Index sank 7.6% to the lowest since June.Topix index was up 1.2%.S&P/ASX 200 Index rose 1.6%.Kospi index fell 0.1%.Hong Kong’s Hang Seng Index was up 1.8%.Shanghai Composite Index rose 0.6%.CurrenciesThe Japanese yen fell 1.7% to 104.17 per dollar.The euro was at $1.1383, down 0.6%. It rose 1.5% Monday.Offshore yuan rose 0.2% to 6.9371 per dollar.Bloomberg Dollar Spot Index rose 0.3%.BondsThe yield on 10-year Treasuries rose 12 basis points to 0.66%.Australia’s 10-year bond yield rose 12 basis points to 0.73%.CommoditiesGold fell 0.9% to $1,665.21 an ounce.West Texas Intermediate rose 6.7% to $33.21 a barrel.\--With assistance from Vildana Hajric.To contact the reporter on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Joanna OssingerFor 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.
https://finance.yahoo.com/news/stock-rout-continue-asia-u-214638253.html?.tsrc=rss
