Saturday , October 24 2020

European stocks climb with futures; dollar extends rally

Bloomberg

European stocks bounded higher with US futures as equity markets built upward momentum after the September selloff cut valuations.
The dollar extended its rebound.
The Stoxx Europe 600 rises the most in two weeks on gains in airline, media and auto shares. Contracts on the blue-chip Dow Jones Industrial Average outperformed those on the Nasdaq 100 as investors turned more cautious on tech stocks. Tesla Inc. falls in the premarket after the carmaker’s presentation disappointed investors.
Treasuries edged higher before Federal Reserve Chairman Jerome Powell and other policy makers speak in Washington. Gold slipped below $1,900 an ounce. A gauge of the dollar advanced after breaking above a key technical resistance level. Sterling dropped to a two-month low after UK Foreign Secretary Dominic Raab said that a second British lockdown cannot be ruled out.
Global stocks are still on track for their first monthly drop since March on the lack of another US fiscal stimulus package and an increase in global virus cases that has raised the specter of more lockdowns. Stock and bond strategists are forecasting exceptional volatility ahead as speculation builds that the November 3 presidential election will be contested.
“This is a massive roller coaster and you just have to hold your stomach,” Erin Gibbs, president and chief executive officer of Gibbs Wealth Management, said on Bloomberg TV. “We are most likely to see this continued high volatility” until the US election in November, she said.
Elsewhere, Zambia became the first African country to ask bondholders for relief since the onset of the coronavirus.
The Stoxx Europe 600 Index gained 1.1% as of 9:20 am London time and futures on the S&P 500 Index increased 0.3%.
While Nasdaq 100 Index futures climbed 0.1%, the MSCI Asia Pacific Index rose 0.1%.
The Bloomberg Dollar Spot Index increased 0.2% and sterling weakened 0.2% to 0.9214 per euro.
While the Japanese yen was little changed at 104.98 per dollar, the Australian dollar declined 0.7% to $0.712.
The yield on 10-year Treasuries falls one basis point to 0.66% and Germany’s 10-year yield decreased two basis points to -0.52%.
While Britain’s 10-year yield falls three basis points to 0.176%, Australia’s 10-year yield dipped three basis points to 0.8095%.
West Texas Intermediate crude falls 0.3% to $39.70 a barrel and gold weakened 1.1% to $1,879.53 an ounce.
While silver weakened 4.1% to $23.39 per ounce, iron ore dipped 2.2% to $111.50 per metric ton.

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