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U.S. Stock Futures Rise After BOJ Stimulus Boosts Asian Equities
(Bloomberg) -- U.S. stock index futures gained for a second day after the Bank of Japan expanded stimulus and investors looked out for further signs of progress in the global fight against the coronavirus.Contracts on the S&P 500 rose as much as 1.3%, and were trading 0.8% higher as of 9:24 a.m. in London, while futures climbed 1% on the Nasdaq 100 Index and 0.9% on the Dow Jones Industrial Average.The BOJ scrapped a limitation on buying government bonds and ramped up its purchases of corporate debt, joining global counterparts in their unprecedented expansion of stimulus. The MSCI Asia Pacific Index gained 2%.Europe’s Stoxx 600 Index also joined the rally as the benchmark climbed 1.8%, with banking stocks pacing the gains after Deutsche Bank posted reassuring results. Data over the weekend showed coronavirus deaths slowed the most in more than a month in Spain, Italy and France. Italian stocks also outperformed after S&P Global Ratings left the country’s credit rating unchanged, providing a boost amid the economic fallout from the coronavirus.“The BOJ announcement of unlimited JGB buying and more and longer corporate debt purchasing appears to have lifted the region,” said Michael McCarthy, the chief market strategist at CMC Markets Asia Pacific in Sydney. “Some are interpreting it as one step closer to direct purchasing of equities by central banks.”The Federal Reserve joins the BOJ and the European Central Bank announcing policy decisions this week as the battle against the pandemic continues. Several major economies will release GDP numbers, while corporate earnings will keep flooding in, including from Amazon.com Inc., Barclays Plc and Samsung Electronics Co.The rally was also supported by signs that some regions are moving toward reopening their economies even as global coronavirus cases approached the 3 million mark. Italy will ease its lockdown in just over a week, a key test in efforts across Europe to broadly restart public life. New York, the center of the U.S. outbreak, outlined reopening plans as well.“Although life is not about to return to normal anytime soon, the hope that peak virus is upon us has lifted financial markets modestly in Asia today,” Jeffrey Halley, senior market analyst at Oanda Asia Pacific, wrote in a research note. Hopes for even a partial return to regular economic activity should see markets such as equities outperform this week, he wrote.For 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/u-stock-futures-rise-boj-055642970.html?.tsrc=rss
(Bloomberg) -- U.S. stock index futures gained for a second day after the Bank of Japan expanded stimulus and investors looked out for further signs of progress in the global fight against the coronavirus.Contracts on the S&P 500 rose as much as 1.3%, and were trading 0.8% higher as of 9:24 a.m. in London, while futures climbed 1% on the Nasdaq 100 Index and 0.9% on the Dow Jones Industrial Average.The BOJ scrapped a limitation on buying government bonds and ramped up its purchases of corporate debt, joining global counterparts in their unprecedented expansion of stimulus. The MSCI Asia Pacific Index gained 2%.Europe’s Stoxx 600 Index also joined the rally as the benchmark climbed 1.8%, with banking stocks pacing the gains after Deutsche Bank posted reassuring results. Data over the weekend showed coronavirus deaths slowed the most in more than a month in Spain, Italy and France. Italian stocks also outperformed after S&P Global Ratings left the country’s credit rating unchanged, providing a boost amid the economic fallout from the coronavirus.“The BOJ announcement of unlimited JGB buying and more and longer corporate debt purchasing appears to have lifted the region,” said Michael McCarthy, the chief market strategist at CMC Markets Asia Pacific in Sydney. “Some are interpreting it as one step closer to direct purchasing of equities by central banks.”The Federal Reserve joins the BOJ and the European Central Bank announcing policy decisions this week as the battle against the pandemic continues. Several major economies will release GDP numbers, while corporate earnings will keep flooding in, including from Amazon.com Inc., Barclays Plc and Samsung Electronics Co.The rally was also supported by signs that some regions are moving toward reopening their economies even as global coronavirus cases approached the 3 million mark. Italy will ease its lockdown in just over a week, a key test in efforts across Europe to broadly restart public life. New York, the center of the U.S. outbreak, outlined reopening plans as well.“Although life is not about to return to normal anytime soon, the hope that peak virus is upon us has lifted financial markets modestly in Asia today,” Jeffrey Halley, senior market analyst at Oanda Asia Pacific, wrote in a research note. Hopes for even a partial return to regular economic activity should see markets such as equities outperform this week, he wrote.For 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/u-stock-futures-rise-boj-055642970.html?.tsrc=rss
