Stocks in China slide; US equity futures advance: markets wrap

US equity futures powered higher and European stocks were steady as investors took in stride a sell-off in Asia, where Chinese shares plunged as markets there reopened amid the worsening coronavirus outbreak. Treasuries and gold declined.

Contracts on the three main American equity indexes all advanced in the wake of Friday’s drop. Gains in technology and travel shares offset declines for miners in the Stoxx Europe 600 Index, as support measures from China’s government helped stem losses in other markets. Stocks in Shanghai fell almost 8%, while local iron ore futures slumped. Equities came off their lows in Tokyo, Seoul and Sydney and fluctuated in Hong Kong.

Oil was little changed, and the offshore yuan weakened to more than 7 per dollar. Copper futures drifted in London trading after dropping for 13 sessions. The deadly outbreak showed no signs of slowing with China’s death toll reaching at least 360.

Investors shifted gears on Monday on the back of turmoil that sent global equities to the worst week since August amid concern economies will falter as the virus spreads. The People’s Bank of China cut rates as it injected cash into the financial system on Monday, part of a slew of measures to shore up their financial markets.

Elsewhere, the pound dipped as investors reacted to a report that UK Prime Minister Boris Johnson could walk away from talks over Britain’s future trade relationship with the European Union. Indian bonds surged after the government refrained from announcing higher debt sales in Saturday’s budget and amid plans to allow foreign investors greater access to government securities.

© 2020 Bloomberg