The future of the United States is booming with equities; Dollar, lower bonds: return of the markets

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(Bloomberg) – US equity futures rose Tuesday with global stocks, while new measures to ease coronavirus blockages in major economies outweigh fears of escalating geopolitical tensions. The dollar fell for a second consecutive session.

Contracts on the three major US stock indexes have rebounded since Friday’s close, with the S&P 500 futures exceeding 3,000. The Stoxx Europe 600 index has surged, as passenger inventories have surged according to reports that Berlin planned to lift travel warnings for 31 European countries. The UK has also announced measures to resume operations, sending the pound high in almost a month.

Japan led the advance of equities in Asia with the reopening of the world’s third largest economy and equities rose in Hong Kong, which showed signs of stabilization after the unrest over the weekend. T-bills slipped after the three-day American weekend, alongside German public debt. WTI crude oil has advanced to around $ 34 a barrel in hopes that the market can rebalance after historic production declines.

Investors are coming out of the holiday weekend in a risky atmosphere, even as tensions between Washington and Beijing continue to mount. China has condemned the United States for adding 33 Chinese entities to a commercial blacklist, but without announcing retaliatory measures. Meanwhile, Beijing has sought to reassure Hong Kong that its judiciary will remain independent under a new national security law.

Reduced blood pressure increases the signs of moderating rates of coronavirus infection. The Japanese government ended its nationwide emergency on Monday, while Germany has seen a decline in the number of new virus cases. Signs that intensified stimulus measures in the euro area are also helping to support risk appetite.

“The market narrative is evolving somewhat, with hopes associated with the loosening of foreclosure measures in many countries and still very exaggerated hopes of finding a short-term vaccine, which must be weighed against the escalating tensions between the United States and China, “said Marc Ostwald. , chief economist and global strategist at ADM Investor Services.

Elsewhere, the euro strengthened before this week’s negotiations over a bloc-wide stimulus fund.

Here are some key events to come:

Profits continue with companies such as British Land, Royal Bank of Canada and HP Inc. On Thursday, the balance of jobless claims in the United States for the week ended May 23, Federal Reserve President Jerome Powell , participates in a virtual discussion on Friday.

These are the main movements on the markets:

Stocks

Futures on the S&P 500 rose 1.9% at 6:28 a.m.New York time, the Stoxx Europe 600 index was up 0.8%, and the MSCI Asia Pacific index jumped 2% .The MSCI Emerging Market index increased by 1.3%.

Currencies

The Bloomberg Dollar Spot index fell 0.7% .The euro rose 0.5% to $ 1.0956. The pound sterling rose 0.9% to $ 1.2305. ” firmed 0.1% to 7.132 per dollar.

Obligations

The 10-year Treasury bill yield increased by three basis points to 0.69%. The two-year Treasury bill yield increased by one basis point to 0.18%. The 10-year yield of Germany gained six basis points to -0.43%. The 10-year yield of Great Britain gained two basis points to 0.191%. The 10-year yield of Japan increased by one point 0.008% base.

Raw materials

Crude West Texas Intermediate gained 2.4% to $ 34.05 a barrel. Brent crude rose 1.5% to $ 36.06 a barrel. Gold fell 0.4% to $ 1,724.45 an ounce.

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