(Bloomberg) — US stock futures fluctuated in early trading, while equities elsewhere rallied after China announced a slew of stimulus aimed at shoring up economic growth.
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Contracts on the S&P 500 pared earlier gains, suggesting stocks would open little changed on Wall Street. Europe’s main equities index, meanwhile, was trading 0.6% stronger as sectors exposed to the Chinese economy rallied. US Treasury yields rose, while the dollar was flat.
China’s broad package of monetary stimulus on Tuesday included reduced reserve requirements for banks and at least 800 billion yuan ($114 billion) of liquidity support for stocks. A gauge of the nation’s shares had its best day since July 2020 and the emerging-market equities index added more than than 1%.
Still, it will take time for the economic impact of any stimulus to feed through, Michael Sneyd, head of cross-asset and macro quantitative strategy at BNP Paribas, told Bloomberg TV. “That China stimulus news is probably not enough to take off those downside risks in the European economy just yet.”
German carmakers gained, with Mercedes-Benz Group AG, BMW AG and Volkswagen AG all rising more than 2%.
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It’s too early to get excited about Starbucks Corp.’s prospects for a turnaround even with a new chief executive officer in charge, Jefferies analysts said, assigning a rare sell-equivalent rating to the struggling coffee chain operator.
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Walmart shares rose more than 1% in premarket trading, after Truist Securities upgraded the retailer to buy from hold, noting its accelerated market-share gains across all income levels.
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The US Justice Department plans to allege that Visa Inc. illegally monopolized the US debit card market, according to people familiar with the matter.
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Boeing Co. took a 30% pay-bump proposal directly to striking workers, as the embattled planemaker seeks to chart a path out of a debilitating strike that has shut down factories across the Pacific Northwest for more than a week.
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China’s measures included a cut to a key short-term interest rate and plans to reduce the amount of money banks must hold in reserve to the lowest level since at least 2018, as well as other steps including a package to shore up the nation’s troubled property sector.
Oil prices climbed on hopes for a stronger Chinese economy, and as a major Israeli strike on Hezbollah targets in Lebanon kept tensions high in the Middle East. Gold hit a fresh record of $2,640.11 per ounce.
Investors are now awaiting data on the Fed’s preferred price metric and US personal spending later this week for further clues on the depth of future reductions. US Traders have been wagering on nearly three-quarters of a point of policy easing by year-end, suggesting at least one more major rate cut is in store.
Key events this week:
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Bank of Canada Governor Tiff Macklem speaks, Tuesday
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Australia CPI, Wednesday
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China medium-term lending facility rate, Wednesday
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Sweden rate decision, Wednesday
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Switzerland rate decision, Thursday
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ECB President Christine Lagarde speaks, Thursday
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US jobless claims, durable goods, revised GDP, Thursday
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Fed Chair Jerome Powell gives pre-recorded remarks to the 10th annual US Treasury Market Conference, Thursday
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Mexico rate decision, Thursday
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Japan Tokyo CPI, Friday
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China industrial profits, Friday
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Eurozone consumer confidence, Friday
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US PCE, University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
Stocks
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S&P 500 futures were little changed as of 8:11 a.m. New York time
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Nasdaq 100 futures rose 0.1%
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Futures on the Dow Jones Industrial Average rose 0.1%
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The Stoxx Europe 600 rose 0.6%
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The MSCI World Index rose 0.1%
Currencies
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The Bloomberg Dollar Spot Index fell 0.1%
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The euro rose 0.2% to $1.1134
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The British pound rose 0.2% to $1.3378
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The Japanese yen fell 0.2% to 143.84 per dollar
Cryptocurrencies
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Bitcoin rose 0.3% to $63,495.6
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Ether fell 1% to $2,635.54
Bonds
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The yield on 10-year Treasuries advanced four basis points to 3.79%
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Germany’s 10-year yield advanced two basis points to 2.18%
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Britain’s 10-year yield advanced five basis points to 3.98%
Commodities
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West Texas Intermediate crude rose 2.3% to $72.02 a barrel
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Spot gold fell 0.2% to $2,624.24 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Mark Cudmore, Winnie Hsu and Aya Wagatsuma.
(An earlier version of the story corrected title of BNP’s Sneyd.)
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