(Bloomberg) — U.S. stock-index futures rallied as investors’ hopes for peace got a boost after Russian President Vladimir Putin saw positive shifts in his country’s talks with Ukraine.
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Contracts on the S&P 500 and Nasdaq 100 indexes added at least 1.2% each after IFX cited Putin as underscoring daily efforts to resolve tensions. The news added a risk-on impulse to a session that had been volatile in early European hours. Gold and Treasuries fell, while the dollar erased its gains. Constellation Energy Corp. rose in premarket New York trading after saying it has the capacity and willingness to support curbs on Russian nuclear fuel.
Despite Friday’s relief rally, global markets are on the edge as the worsening war in Ukraine stokes inflation and threatens to sap growth. Investors are tottering between panic-selling and dip-buying of beaten-down assets as they brace for an anticipated rate increase by the Federal Reserve next week. If the European Central Bank’s decisions Thursday are any guide, policy makers may prioritize their inflation fight over the need to support economic recovery.
Constellation Energy jumped 4.4% in early trading as the owner of the largest U.S. fleet of nuclear power plants said it would support “any limits” Washington may impose on Russian uranium. The company has enough nuclear fuel to run its reactors for multiple years and is working with vendors to head off any potential supply disruptions, a spokesman said.
Europe’s Stoxx 600 rose for only the second time this week, led by companies that benefit from economic reopening and central-bank tightening, such as travel companies and banks. Data showed the U.K. economy grew faster than forecast in January.
Oil rebounded, but was still on track for its biggest weekly loss since November. U.S. President Joe Biden is expected to call for an end to normal trade relations with Russia, clearing the way for increased tariffs on the country’s imports.
DocuSign plunged 18% in early New York trading after the electronic-signature company forecast revenue for the first quarter that fell short of the average analyst estimate.
Treasuries fell, with the 10-year yield adding two basis points to 2.01%.
Earlier, trading in Asia reflected overnight losses in the U.S. market. An MSCI Inc. gauge of the region’s stocks capped its fourth consecutive weekly decline. A technology gauge in Hong Kong slumped more than 6% after the U.S. identified five Chinese firms that could be delisted. Chinese stocks traded in the U.S. had their worst day since 2008 Thursday amid renewed regulatory concerns.
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Some of the main moves in markets:
Stocks
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Futures on the S&P 500 rose 1.3% as of 7:42 a.m. New York time
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Futures on the Nasdaq 100 rose 1.6%
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Futures on the Dow Jones Industrial Average rose 1.2%
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The Stoxx Europe 600 rose 1.9%
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The MSCI World index was little changed
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro rose 0.2% to $1.1012
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The British pound rose 0.2% to $1.3108
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The Japanese yen fell 0.6% to 116.86 per dollar
Bonds
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The yield on 10-year Treasuries advanced two basis points to 2.01%
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Germany’s 10-year yield advanced three basis points to 0.30%
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Britain’s 10-year yield advanced one basis point to 1.54%
Commodities
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West Texas Intermediate crude rose 1% to $107.12 a barrel
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Gold futures fell 1.6% to $1,968.50 an ounce
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