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Shanghai shares surge more than 4% as officials pledge support
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Italian bonds rise after Moody’s removes threat of downgrade
European stocks and U.S. futures advanced on Monday, tracking gains in Asia after Chinese equities surged as top officials moved to shore up the economy. The dollar and Treasuries dipped, while Italian bonds rallied.
Risks still abound across global markets, from tension surrounding the death of a Saudi journalist and the ongoing trade showdown between some of the world’s biggest economies to Italian budget fears and President Donald Trump’s unpredictable actions ahead of American midterm elections. Still, equities are attempting to bounce back after a miserable couple of weeks, and company results from the likes of Amazon, Alphabet, Microsoft and Intel as well as U.S. growth data may provide a welcome distraction in the coming days.
Elsewhere, most commodities advanced. Brent crude climbed about $80 per barrel and WTI headed for $70. Emerging-market stocks jumped as their currencies edged higher.
Terminal readers can read more in our Markets Live blog.
Here are some key events coming up this week:
- Earnings season gathers pace with notable highlights including Amazon.com, Alphabet, Intel, Verizon, Microsoft, Twitter, McDonald’s, UBS, Deutsche Bank, Barclays, Total, United Technologies, Caterpillar, Halliburton and Linde.
- Monetary policy decisions are due in Europe, Indonesia, Sweden and Canada.
- ECB policy makers could on Thursday confirm that asset purchases will end this year, reiterating its pledge to keep interest rates at record lows through summer 2019. President Mario Draghi will hold a press conference.
- U.S. gross domestic product growth may have slowed in the third quarter, yet remained near its best pace since mid-2015, according to forecasts ahead of Friday’s release.
And these are the main moves in markets:
Stocks
- Futures on the S&P 500 Index rose 0.4 percent as of 8:09 a.m. London time.
- The Stoxx Europe 600 Index gained 0.7 percent.
- The U.K.’s FTSE 100 Index climbed 0.4 percent to the highest in more than a week.
- Germany’s DAX Index jumped 1 percent.
- The MSCI Asia Pacific Index increased 0.5 percent.
- The MSCI Emerging Market Index rose 1.1 percent.
Currencies
- The Bloomberg Dollar Spot Index fell 0.2 percent, the largest fall in a week.
- The euro gained 0.3 percent to $1.1548.
- The British pound rose 0.1 percent to $1.3084.
- The Japanese yen decreased 0.2 percent to 112.74 per dollar, the weakest in almost two weeks.
Bonds
- The yield on 10-year Treasuries rose one basis point to 3.20 percent.
- Germany’s 10-year yield increased two basis points to 0.48 percent.
- Britain’s 10-year yield climbed one basis point to 1.588 percent.
- The spread of Italy’s 10-year bonds over Germany’s declined 17 basis points to 2.8514 percentage points to the smallest premium in more than two weeks.
Commodities
- West Texas Intermediate crude gained 0.7 percent to $69.60 a barrel, the largest rise in almost two weeks.
- Gold rose less than 0.05 percent to $1,227.05 an ounce, the highest in a week.
By Samuel Potter and Adam Haigh
— With assistance by Andreea Papuc
October 22, 2018, 6:17 PM GMT+11
Source: Bloomberg