U.S. Futures Gain; European Stocks Erase Gains: Markets Wrap


(Bloomberg) — U.S. equity-index futures gained amid a flurry of deal activity and signs of progress toward a virus vaccine. European shares were mixed as oil producers dropped.

Contracts on the S&P 500 and Nasdaq 100 Index added about 1%. European stocks gave up early gains to trade little changed. Crude oil declined as companies from BP Plc to Trafigura Group questioned the future of demand growth. The dollar edged lower and Treasuries were little changed ahead of this week’s Federal Reserve meeting.

Immunomedics Inc. shares more than doubled in U.S. pre-market trading after Gilead Sciences Inc. agreed to buy the cancer drugmaker for $21 billion. In Japan, SoftBank Group Corp. climbed as Nvidia Corp. agreed to buy the firm’s chip division Arm Ltd. for $40 billion.

Pfizer Inc. Chief Executive Officer Albert Bourla said it’s “likely” the U.S. will deploy a Covid-19 vaccine to the public before year-end and that the company is prepared for that scenario. Seperately, AstraZeneca Plc and the University of Oxford have restarted a U.K. trial of their vaccine after the study was halted over concerns about a participant who fell ill.

Global stocks are coming off the back of the first consecutive weeks of declines since March and traders remain on edge given the recent reassessment of valuations and volatility in options markets. The Fed is expected this week to maintain its dovish stance on policy as investors look for signs the global economy is recovering from the pandemic. Strategists at Goldman Sachs Group Inc. and Deutsche Bank AG suggested the recent pullback in the U.S. is nearing an end.

Read why Goldman, Deutsche say U.S. stock selloff may be nearing an end

“With such a powerful monetary impulse coursing through the US and European economy, the odds are that the market will be surprised again positively” in the fourth quarter, said Sebastien Galy, senior strategist at Nordea Investment Funds. “The conclusion is that we should remain in a buy on dip market.”

Here are some key events coming up:

China industrial production and retail sales data is due on Tuesday.Wednesday sees the FOMC policy decision and news conference from Chair Jerome Powell.Bank of Japan, Bank Indonesia and Bank of England policy decisions come Thursday.Friday sees quadruple witching for U.S. markets when the quarterly expiration of futures and options on indexes and stocks happens on the same day.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index advanced 0.9% as of 10:49 a.m. London time.The Stoxx Europe 600 Index was little changed.The MSCI Asia Pacific Index increased 0.8%.The MSCI Emerging Market Index advanced 0.7%.

Currencies

The Bloomberg Dollar Spot Index declined 0.1%.The euro was little changed at $1.185.The British pound advanced 0.4% to $1.2848.The Japanese yen strengthened 0.1% to 106.01 per dollar.The offshore yuan strengthened 0.1% to 6.8245 per dollar.

Bonds

The yield on 10-year Treasuries dipped less than one basis point to 0.66%.The yield on two-year Treasuries climbed less than one basis point to 0.13%.Germany’s 10-year yield sank two basis points to -0.50%.Britain’s 10-year yield fell one basis point to 0.174%.Japan’s 10-year yield declined one basis point to 0.021%.

Commodities

West Texas Intermediate crude fell 1.2% to $36.94 a barrel.Brent crude dipped 1.2% to $39.45 a barrel.Gold strengthened 0.1% to $1,942.16 an ounce.

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