U.S. Futures Rise, Europe Stocks Steady After Rout: Markets Wrap

(Bloomberg) — U.S. futures rose and European stocks were steady on Friday as a sharp selloff spurred by concerns over a second wave of coronavirus infections and the prospect of a protracted economic recovery eased. Treasuries and the dollar slipped.

Contracts on the the three main U.S. equity benchmarks pointed to gains at the open after Wall Street suffered its biggest drop in 12 weeks on Thursday, with airlines, cruise and travel shares that had soared in recent weeks bearing the brunt of the selling. The Stoxx Europe 600 Index erased an earlier decline, with car makers and banking shares leading gains. Asian equities tumbled overnight, while crude oil extended declines.

Investors are catching their breath after a frantic stock rally stumbled this week as pessimism mounted about the speed of recovery following months of lockdown. Treasury Secretary Steven Mnuchin said the U.S. shouldn’t shut down the economy again even as fears emerged over a second wave of the virus. Global cases of Covid-19 have now surpassed 7.5 million. The worries come as some investors fret about the velocity of the stock comeback, with the U.S. benchmark index still up more than 30% from its March low.

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 Index advanced 1.3% as of 8:28 a.m. London time.The Stoxx Europe 600 Index climbed 0.2%.The MSCI Asia Pacific Index fell 1.3%.The MSCI Emerging Market Index dipped 1%.

Currencies

The Bloomberg Dollar Spot Index declined 0.1%.The euro gained 0.1% to $1.1313.The British pound was little changed at $1.2601.The onshore yuan weakened 0.2% to 7.079 per dollar.The Japanese yen weakened 0.3% to 107.17 per dollar.

Bonds

The yield on 10-year Treasuries advanced two basis points to 0.69%.The yield on two-year Treasuries advanced less than one basis point to 0.20%.Germany’s 10-year yield dipped less than one basis point to -0.42%.Britain’s 10-year yield advanced less than one basis point to 0.202%.Japan’s 10-year yield climbed less than one basis point to 0.013%.

Commodities

West Texas Intermediate crude declined 3.5% to $35.05 a barrel.Brent crude dipped 3.2% to $37.33 a barrel.Gold strengthened 0.2% to $1,731.90 an ounce.

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