In European Equity Markets indices rose Tuesday following an overnight surge on Wall Street amid hopes central banks would potentially take action to combat the economic impact of the coronavirus outbreak. The Shanghai composite was also up 1.36%. Hong Kong’s Hang Seng index added 0.78%. In South Korea, the Kospi also saw robust gains as it gained about 2%. Australia’s S&P/ASX 200 was up about 1.4% as the sectors mostly advanced. The Nikkei 225 in Japan shed earlier gains to trade largely flat
In Currency Markets the euro held steady just under its highest in two months against the dollar on Tuesday, on expectations that coronavirus-driven monetary easing in the United States can and will run deeper than any similar action in Europe. Both U.S. Federal Reserve Chairman Jerome Powell and European Central Bank (ECB) President Christine Lagarde have hinted at action in recent days. The euro climbed as high as $1.1185 overnight, its highest since early January while the dollar fell to a six-week low against a basket of currencies.
In Commodities Markets oil prices rose for a second day on Tuesday on expectations that central banks are likely to enact financial stimulus to offset the impacts of the coronavirus outbreak and growing optimism that OPEC will order deeper output cuts this week. Brent crude rose $1.26 per barrel, or 2.4%, to $53.16 per barrel. U.S. WTI rose $1.24, or 2.7%, to $47.99 a barrel. Brent and WTI have rebounded somewhat over the past two days from a more than 20% drop from their 2020 peak in January.
In US Equity Markets jumped on Monday as investors hunted for bargains following reassurances by central banks that they stood ready to counter the economic impact from the coronavirus following last week’s steep sell-off. Apple bounced back from a two-year low to jump 5.5% and lift the S&P 500 more than any other company. The S&P 500 was up 1.86% at 3,009.13. The Nasdaq added 1.82% to 8,723.49. Cancer drug developer Forty Seven Inc jumped 61% after larger peer Gilead Sciences made a $4.9 billion offer for the firm. Gilead rose 5.8%.
In Bond Markets U.S. Treasury prices fell on Monday as long-dated yields rose from record lows, stocks soared and investors cheered stimulus measures from global central banks meant to ease the economic impact of the coronavirus. U.S. long-dated yields across the board rose for the first time in 11 days, while those on two-year notes gained after seven straight days of declines. U.S. 10-year yields rose to 1.166%, from 1.126% late on Friday. During the session, 10-year yields fell to a record low of 1.03%.