Stocks Rise on Trade Talks, Stimulus; Bonds Dip: Markets Wrap

(Bloomberg) — Global stocks rose with U.S. equity futures on Friday as investors cheered the latest breakthrough in trade negotiations between America and China and stimulus talks in Europe. Treasuries slipped.

The Stoxx 600 Index climbed as attention turned to Friday’s negotiations over the European Union’s proposed 750 billion-euro ($840 billion) program to help economies rebound from lockdowns. Wirecard AG shares bucked the trend, continuing their free-fall as the German payments company faced a potential cash crunch. Contracts on the three main U.S. stock gauges advanced after China said it plans to accelerate purchases of American farm goods to comply with the phase one trade deal following talks in Hawaii.

After a brief swoon, equity markets are back to rallying as investors bet that governments will be able to put their economies back on track with enough stimulus at their disposal. The Stoxx 600 is up 3% since Monday and has clawed back most of the drop last week.

Still, with uncertainty over how quickly economies can emerge from lockdowns, and a welter of options set to expire later Friday, investors are bracing for potential bouts of volatility. The quarterly event know as quadruple witching usually coincides with a re-balancing of major indexes and can spark some of the busiest trading days of the year.

Elsewhere, crude oil advanced past $40 a barrel in New York as trading houses Vitol SA and Trafigura Group said global demand is recovering rapidly from its nadir in April.

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 Index increased 0.5% as of 9:17 a.m. London time.The Stoxx Europe 600 Index gained 0.5%.Germany’s DAX Index rose 0.5%.The MSCI Asia Pacific Index climbed 0.2%.

Currencies

The Bloomberg Dollar Spot Index was little changed.The euro was little changed at $1.1206.The Japanese yen was little changed at 106.96 per dollar.The British pound was little changed at $1.2419.

Bonds

The yield on 10-year Treasuries increased one basis point to 0.72%.Germany’s 10-year yield climbed less than one basis point to -0.40%.Britain’s 10-year yield gained two basis points to 0.252%.

Commodities

West Texas Intermediate crude increased 2.8% to $39.92 a barrel.Gold strengthened 0.4% to $1,730.11 an ounce.

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.