Stock Futures Edge Up, Oil Climbs, Yuan Steady: Markets Wrap

(Bloomberg) — U.S. and European stock futures edged up, oil clawed back some of its recent losses, and China’s yuan was stable in offshore trading as investors continued to assess the risks from the coronavirus.

A senior official said the White House hasn’t asked for a suspension of U.S.-China flights, helping ease some concerns amid mounting evidence of a near-term economic hit from the disease. Most Asian benchmarks rose, while Hong Kong tumbled in a catch-up with the global sell-off since that market shut for holidays. China remains closed. Treasuries added to recent gains.

© Bloomberg The Hang Seng Index and gauge of Hong Kong-listed China firms plunge

The S&P 500 Index climbed 1% on Tuesday as markets began to steady from the blow to confidence in the global growth recovery. Apple Inc. rose in after-hours trading after its sales forecast topped estimates. With earnings continuing to roll in, investors are looking for signs of how the disease is affecting operations in China. More than 5,974 people have been infected in China and at least 132 have died.

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“We are seeing economic data points that support this continued recovery,” Susan Schmidt, a fund manager at Aviva Investors, told Bloomberg TV. “The coronavirus might have tamped that down just a bit, but overall management teams are coming back and giving a pretty positive outlook and feeling confident about their businesses.”

Here are some events to watch out for this week:

Wednesday brings reports from GE, Boeing and Facebook; Samsung Electronics, International Paper, Unilever and Shell report on Thursday, followed by South Korean chip maker SK Hynix, Chevron, Caterpillar and Exxon Mobil all on Friday.Federal Reserve policy makers on Wednesday are expected to open 2020 the same way they closed 2019 — by holding rates steady.Goldman Sachs will hold its first-ever Investor Day on Wednesday.The Bank of England meeting on Thursday is highly anticipated after a series of dovish comments raised speculation policy makers could lower interest rates.The U.S. reports fourth-quarter GDP Thursday.The U.K. is scheduled to leave the European Union Friday.

These are the main moves in markets:

Stocks

Futures on the S&P 500 added 0.2% as of 7:07 a.m. in London. The index rose 1% on Tuesday.Euro Stoxx 50 contracts rose 0.1%.Japan’s Topix index added 0.5% at the close in Tokyo.FTSE China A50 futures climbed 1.2%.Hong Kong’s Hang Seng dropped 2.8%.

Currencies

The yen traded flat at 109.09 per dollar.The offshore yuan was at 6.9628 per dollar.The euro bought $1.1011.

Bonds

The yield on 10-year Treasuries dipped about two basis points to 1.64%.Australia’s 10-year yield advanced six basis points to 1.01%.

Commodities

West Texas Intermediate crude rose 1% to $53.99 a barrel.Gold was flat at $1,568.01 an ounce.

–With assistance from Tian Chen, Sofia Horta e Costa and Joanna Ossinger.

To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net;Andreea Papuc in Sydney at apapuc1@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Ravil Shirodkar

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