(Bloomberg) -- U.S. equity futures rose and European stocks fluctuated following steep losses on Friday as investors monitored the international response to the coronavirus outbreak. Shares plunged in China in a catch-up move as markets there reopened after a long holiday.
Contracts on the three main American equity indexes all climbed, with Gilead Sciences Inc. jumping in the premarket as China prepares to test one of the company’s new anti-viral drugs. The Stoxx Europe 600 Index swung between gains and losses, as support measures from China’s government helped stem losses in other markets.
Stocks in Shanghai fell almost 8% and fluctuated in Hong Kong, which suspended 10 out of 13 border checkpoints with China. Treasuries slipped. Oil was little changed, while the offshore yuan weakened to more than 7 per dollar.
Investors shifted gears on Monday on the back of turmoil that sent global equities to the worst week since August amid concern economies will falter as the virus spreads. The People’s Bank of China cut rates as it injected cash into the financial system on Monday, part of a slew of measures to shore up their financial markets. Still, the economic toll is becoming clearer, as the country’s oil demand has reportedly dropped by about three million barrels a day, or 20% of total consumption.
Elsewhere, the pound slid as investors reacted to a report that U.K. Prime Minister Boris Johnson could walk away from talks over Britain’s future trade relationship with the European Union. Copper futures in London halted 13 sessions of declines.
Norway’s krone fell to a three-month low versus the euro after the nation’s manufacturing PMI data came in weaker than expected and on news of the drop in China’s oil demand.
Here are some key events coming up:
The first contest to choose a Democratic nominee to run against Donald Trump in November is the Iowa caucuses Monday.The U.S. manufacturing gauge from the Institute for Supply Management is due Monday. There are also a slew of other PMIs, including India and Brazil.Tuesday brings a policy decision from the Reserve Bank of Australia, and the Reserve Bank of India’s interest rate decision is due Thursday.Friday has the U.S. employment report for January.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index increased 0.5% as of 6:40 a.m. New York time.Nasdaq 100 Index futures gained 0.5%.The Stoxx Europe 600 Index was little changed.The MSCI All-Country World Index decreased 0.2%.The MSCI Emerging Market Index sank 0.6%.
Currencies
The Bloomberg Dollar Spot Index advanced 0.2%.The British pound sank 1.1% to $1.3056.The euro dipped 0.3% to $1.106.The Japanese yen weakened 0.1% to 108.49 per dollar.The offshore yuan depreciated 0.3% to 7.0169 per dollar.
Bonds
The yield on 10-year Treasuries gained three basis points to 1.53%.Germany’s 10-year yield fell less than one basis point to -0.44%.Britain’s 10-year yield decreased one basis point to 0.519%.
Commodities
West Texas Intermediate crude advanced 0.3% to $51.71 a barrel.Gold weakened 0.6% to $1,579.78 an ounce.LME copper climbed 0.4% to $5,590.50 per metric ton.
--With assistance from Haslinda Amin and Adam Haigh.
To contact the reporter on this story: Todd White in Madrid at twhite2@bloomberg.net
To contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, Yakob Peterseil
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2020-02-03 11:45:00Z
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