(Bloomberg) — U.S. equity-index futures rose amid a flurry of deal activity and signs of progress toward a vaccine. European shares gave up early gains, while the pound rebounded.
Oracle Corp. jumped 7% in pre-market trading on reports the company beat Microsoft Corp. in negotiations for the U.S. operations of TikTok. Immunomedics Inc. doubled after Gilead Sciences Inc. agreed to buy the cancer drugmaker for $21 billion.
Airline and retail shares advanced in European trading. 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.
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 Federal Reserve 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.”
The Stoxx Europe 600 Index was weighed down by oil producers and crude prices retreated. Commodity trader Trafigura Group expects the market to return to surplus, while BP Plc said the relentless growth of oil demand is over and consumption may never return to the levels seen before the pandemic took hold.
The dollar edged lower and Treasuries were steady. In Asia trading, SoftBank Group Corp. climbed after Nvidia Corp. agreed to buy the firm’s chip division Arm Ltd. for $40 billion.
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:
Futures on the S&P 500 Index advanced 1% as of 6:47 a.m. New York time.The Stoxx Europe 600 Index was little changed.The MSCI Asia Pacific Index climbed 0.9%.The MSCI Emerging Market Index advanced 0.7%.
The Bloomberg Dollar Spot Index fell 0.3%.The euro gained 0.2% to $1.1875.The British pound gained 0.7% to $1.288.The Japanese yen strengthened 0.2% to 105.92 per dollar.The offshore yuan strengthened 0.2% to 6.8211 per dollar.
The yield on 10-year Treasuries dipped less than one basis point to 0.66%.The yield on two-year Treasuries increased 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 0.173%.Japan’s 10-year yield declined one basis point to 0.021%.
West Texas Intermediate crude dipped 0.7% to $37.14 a barrel.Brent crude declined 0.7% to $39.65 a barrel.Gold strengthened 0.2% to $1,943.77 an ounce.
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