(Bloomberg) — U.S. and European equity-index futures gained on Monday along with stocks in Asia as China’s ongoing economic recovery countered some of the concerns sparked by rising global coronavirus cases.
The dollar dipped and the yen ticked up. The Aussie rose after an influential economist walked back his call for an interest-rate cut to November from October. S&P 500 futures gained after the gauge advanced on Friday, while shares climbed in Seoul, Tokyo and Hong Kong. Euro Stoxx 50 contracts were up almost 2%. Crude oil slipped, while Treasuries were little changed.
China Evergrande Group’s shares rose along with its bonds after the firm attempted to revive confidence in its finances. HSBC Holdings Plc advanced the most in Hong Kong trading since 2009 after the bank’s biggest shareholder added to its stake in the embattled lender.
Global equities remain on course for the first month of losses since March, amid mounting risks to the economic recovery from fresh coronavirus waves and stalling fiscal relief in the U.S. One of the brighter spots is China, where data over the weekend showed profits at industrial companies grew for a fourth consecutive month in August.
“The data augurs well for the China growth story,” said Stephen Innes, global markets strategist at AxiCorp.
At the same time, tension between Beijing and Washington continues to simmer. President Donald Trump’s ban on TikTok was temporarily blocked by a federal judge, dealing a blow to the government in its showdown with the popular Chinese-owned app over national security concerns. China’s largest chipmaker, Semiconductor Manufacturing International Corp., sank to a four-month low in Hong Kong after the U.S. imposed export restrictions.
In the U.S., Democrats and Republicans will have to pick up the pace to complete a stimulus relief package before the Nov. 3 presidential election. While the sides remain far apart, Nancy Pelosi said there is a chance she and Treasury Secretary Steven Mnuchin can still reach a deal.
Meantime, investors were also digesting a New York Times report that President Trump paid just $750 in U.S. income taxes in both 2016 and 2017. Trump said the story is a “total fake.”
Here are some key events coming up:
The final scheduled round of talks between the U.K. and EU on a post-Brexit trade deal takes place in Brussels on Monday.On Tuesday, the first U.S. presidential debate will take place between President Donald Trump and Democratic opponent Joe Biden.China purchasing manager indexes are due Wednesday, and expected to show September manufacturing improved slightly while non-manufacturing moderated from August’s level.The EIA crude oil inventory report comes out Wednesday.The September U.S. employment report on Friday will be the last before the November election.
These are the main moves in markets:
Stocks
S&P 500 futures gained 0.7% as of 7:02 a.m. in London. The index rose 1.6% on Friday.Japan’s Topix index added 1.7%.Hong Kong’s Hang Seng rose 0.9%.Shanghai Composite added 0.1%.South Korea’s Kospi index climbed 1.3%.Australia’s S&P/ASX 200 index was little changed.Euro Stoxx 50 futures added 1.7%.
Currencies
The Bloomberg Dollar Spot Index fell 0.1%.The yen was at 105.29 per dollar, up 0.3%.The euro bought $1.1633, little changed.The offshore yuan was at 6.8346 per dollar.The Aussie rose 0.2% to 70.48 U.S. cents.
Bonds
The yield on 10-year Treasuries ticked higher to 0.66%.Australia’s 10-year bond yield fell three basis points to 0.77%.
Commodities
West Texas Intermediate crude fell 0.9% to $39.90 a barrel.Gold was at $1,856.76 an ounce, down 0.3%.
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