This post was originally published on this site
European stocks and U.S. stock futures climbed on Tuesday as markets attempted to stabilize on the heels of the worst selloff for markets since the financial crisis.
The Stoxx Europe 600 SXXP, +4.04% SXXP, +4.04% rose 3% to 350.43 after retreating by more than 7% on Monday, its worst single-day percentage drop since the 2008 financial crisis and lowest close since Jan. 2, 2019. The FTSE 100 index UKX, +4.40% gained 3.2% after the benchmark slid nearly 7% on Monday to levels last seen when Britain voted to leave the European Union in 2016.
The German DAX 30 index DAX, +3.76% rose 3%, while the French CAC 40 index PX1, +4.53% gained 3.6%. Spain’s IBEX 30 IBEX, +3.79% and the FTSE MIB index I945, +3.70% rose 3% each. Dow futures YM00, +4.58% rose 1,000 points after a 2,000-point tumble on Monday.
Italian stocks tumbled over 11% on Monday as the government put the entire country on lockdown to stop spiraling coronavirus infections. The restrictions are expected to be enforced more seriously than the prior clampdown on the northern region.
Other governments are scrambling to get ahead of outbreaks, with Spain closing schools in two regions — Madrid and a Basque province — as of Wednesday. It is expected to announce more measures Tuesday after a government meeting as cases have been ramping up dramatically. European leaders are reportedly due to hold an emergency teleconference on Tuesday as Italy and France have pushed for widespread stimulus across the region.
President Donald Trump will hold another press conference Tuesday to discuss a coronavirus response. The hint of a payroll tax in the U.S. would help boost equities and oil prices, which saw their biggest drop since 1991.
U.S. crude-oil futures CL00, +9.79% rose over 7% in early trading even amid signs of an increasing price war between Saudi Arabia and Russia. Energy giant Saudi Aramco said Tuesday that it would supply the market with 12.3 million barrels a day in April. That comes after a nearly 25% slump for crude Monday after OPEC and its allies, notably Russia, failed on Friday to agree on additional output cuts to boost sagging prices
But analysts still remained skeptical of long-lasting market gains after Monday’s brutal session.
Shares of Air France-KLM AF, +6.60% rose 5% after a 9% decline Monday. The airline said on Tuesday that it would cut 3,600 flights in March, while KLM expects to reduce long-haul operations. Other airlines saw even bigger rebounds, with easyJet PLC EZJ, +9.32% up 9% and International Consolidated Airlines IAG, +8.47% , which operates British Airways among others, shares jumped 8%.
Shares of oil giant BP BP, +9.05% BP, -19.10% rose 3% after a nearly 20% tumble on Monday prompted by a plunge in crude after Saudi Arabia slashed its oil prices and said it would increase output next month. Oil prices rose over 5% on Tuesday.
Other gainers included auto maker Renault RNO, +11.62% , which gained 9% and Swiss bank Credit Suisse CSGN, +8.77% , up nearly 8%. Shares of Deutsche Post DPW, +7.43% gained 8% after reporting higher fourth-quarter net profit, though the company warned over a significant hit from the virus for some of its units.
