Stock Futures Rise With Euro on ECB Support Move: Markets Wrap

(Bloomberg) — The euro and U.S. equity futures rose after the European Central Bank announced more stimulus measures.

S&P 500 futures reversed losses to rise about 2% and the euro edged up. The ECB launched a new temporary program worth 750 billion euros ($820 billion). Wall Street suffered another plunge Wednesday as investor focus turned to the possible length of the coronavirus-driven downturn. Oil rose to take back some of Wednesday’s 24% plunge that left prices at an 18-year low.

In currencies earlier, the Bloomberg surged to an all-time high as investors sought to raise cash. The pound hit its lowest level against the greenback since 1985.

“The outlook has changed pretty dramatically even in the last few days,” Alicia Levine, chief strategist at BNY Mellon, told Bloomberg TV. “We’re looking at a sudden stop globally, so the probability of a global recession has gone up remarkably.”

Meantime, the U.S. Senate cleared the second major bill responding to the coronavirus pandemic and White House economic adviser Larry Kudlow said the government might take an equity position as part of an aid package. Australia is expected on Thursday to announce a quantitative easing package.

“We still have downside room in the stock market,” Scott Minerd, co-founder and global chief investment officer at Guggenheim Partners, told Bloomberg TV. “Until we see some forced liquidation — which for the first time today I have a sense we are seeing — we are not going to come to a bottom.”

Oil on Wednesday dropped below $25 a barrel for the first time since 2003 in London and tumbled 24% in New York after Saudi Arabia signaled it’s doubling down on a price war with Russia just as demand evaporates with the spreading coronavirus.

Here are the main moves in markets:

Stocks

• Futures on the S&P 500 Index rose 1.5% as of 8:01 a.m. in Tokyo. The underlying index fell 5.2% on Wednesday.
• Futures on Japan’s added 1.8%.
• Australia’s S&P/ASX 200 Index added 0.4%.

Currencies

• The yen was at 108.14 per dollar.
• The traded at 7.0716 per dollar.
• The pound was at $1.1604 after tumbling 3.7%.
• The bought 57.97 U.S. cents.
• The euro traded at $1.0944, up 0.3%.

Bonds

• The yield on 10-year Treasuries rose 11 basis points to 1.19%.
• Australia’s 10-year yield advanced 18 basis points to 1.39%.

Commodities

• West Texas Intermediate crude added 13% to $22.99 a barrel.
• Gold was at $1,486.90 an ounce.

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