November 29, 2020
(Bloomberg) — Stocks rallied with U.S. futures on Tuesday as a gust of optimism swept...

(Bloomberg) — Stocks rallied with U.S. futures on Tuesday as a gust of optimism swept through global equity markets with millions of Americans headed to vote. Currency traders braced for increased volatility.Banks and oil drillers including Chevron Corp. rose in U.S. premarket trading. Futures on the blue-chip Dow Jones Industrial Average surged as much as 1.8%, outperforming contracts on the tech-heavy Nasdaq 100. Treasuries fell and a gauge of the dollar dropped the most in three weeks as a risk-on mood prevailed.While trades reflecting a Democratic sweep held firm, betting markets aren’t convinced. They slipped to just over 50% odds of the so-called Blue Wave – that Democrats take the presidency as well as Congressional majorities. Traders hedged prospects of post-vote volatility, driving a measure of expected swings in China’s yuan to its highest level in more than nine years.In Europe, mining shares surged, helped by the sliding dollar. Banks including BNP Paribas SA advanced after joining its European peers in posting lower-than-expected bad-loan provisions from the pandemic. Most of Asia’s biggest equity markets jumped by more than 1.4%.“The election outcome will drive all markets over the next day or two,” Torsten Slok, chief economist at Apollo Global Management told Bloomberg. “How they move depends on the extent to which we have clarity about the results.”Investors are reflecting more optimism following weeks of speculation that a contested election outcome may produce no clear winner for some time and roil markets. Polls continue to tell them that Democratic nominee Joe Biden is ahead, though the race looks tight in some battleground states, some of which are seeing virus cases soar.Once the U.S. election passes, investors will contend with the Federal Reserve delivering a policy decision Thursday before the October jobs report Friday. Elsewhere, oil held gains after jumping the most in three weeks on Monday on increasing signs OPEC+ will delay a planned easing of output cuts.These are some key events coming up:U.S. general elections on Tuesday.EIA crude oil inventory report on Wednesday.Fed policy decision on Thursday.The key U.S. non-farm payrolls report is due Friday.Earnings are due this week from companies including Alibaba Group Holding Ltd., AstraZeneca Plc, Nintendo Co., Macquarie Group Ltd. and Toyota Motor Corp.These are some of the main moves in financial markets:StocksFutures on the S&P 500 Index increased 1.2% as of 6:20 a.m. New York time.Nasdaq 100 Index futures advanced 0.7%.The Stoxx Europe 600 Index gained 1.4%.The MSCI Asia Pacific Index climbed 1%.CurrenciesThe Bloomberg Dollar Spot Index decreased 0.5%.The British pound gained 0.6% to $1.2996.The Japanese yen was little changed at 104.76 per dollar.The Taiwanese dollar was little changed at NT$28.92 per U.S. dollar.BondsThe yield on 10-year Treasuries increased three basis points to 0.88%.Germany’s 10-year yield jumped three basis points to -0.61%.Britain’s 10-year yield gained four basis points to 0.256%.CommoditiesWest Texas Intermediate crude surged 3.3% to $38.02 a barrel.Gold strengthened 0.2% to $1,898.56 an ounce.Soybeans climbed 1.1% to $10.64 a bushel.Iron ore fell 1.3% to $113 per metric ton.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Source link