(Bloomberg) — Stocks rose with U.S. equity futures Tuesday on wagers that vaccines can help tame the omicron virus outbreak and signs that U.S. President Joe Biden could yet revive his $2 trillion economic agenda.
European shares rebounded, with miners in the lead as commodities gained. Contracts on S&P 500 and Nasdaq 100 futures were also in the green, signaling stabilization after a global equity index dropped the most this month on Monday. Asian shares were bolstered by a rebound in Japan and a rally in Chinese property developers.
Markets have whipsawed going into the holiday season as investors assess economic risks from the spread of the omicron virus variant and a hawkish central-bank pivot. While sentiment took another hit after Democratic Senator Joe Manchin rejected President Joe Biden’s tax-and-spending package on Sunday, a call between the two has stoked optimism the deal isn’t dead.
Treasury yields ticked up and the dollar were little changed, while crude oil was in the green. European power prices surged to a record amid a crunch in France.
“There is more uncertainty than I think most people thought we would see here as they were anticipating a Santa Claus rally,” Victoria Fernandez, Crossmark Global Investments chief market strategist, said on Bloomberg Television. “Volatility and uncertainty are the key terms that will lead us into the new year.”
Meanwhile, positive corporate reports boosted some shares in U.S. premarket trading. Nike Inc. climbed 3.2% after its sales beat estimates, while chipmakers got a boost from Micron Technology Inc.’s bullish revenue outlook.
Renewable-energy shares looked set to rebound on optimism about the American fiscal stimulus package, which includes a funding pledge to tackle climate change.
Elsewhere, iron ore led gains in metals. Bitcoin rallied to climb past the $48,000 level.
Turkey’s lira extended a surge sparked by extraordinary government measures to bolster the currency.
What to watch this week:
- EIA crude oil inventory report Wednesday
- Bank of Japan Governor Haruhiko Kuroda speaks Thursday
- U.S. consumer income, new home sales, U.S. durable goods, University of Michigan consumer sentiment, initial jobless claims. Thursday
- Friday: U.S. markets are closed. European markets close earlier
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 rose 0.6% as of 5:30 a.m. New York time
- Futures on the Nasdaq 100 rose 0.7%
- Futures on the Dow Jones Industrial Average rose 0.6%
- The Stoxx Europe 600 rose 0.8%
- The MSCI World index rose 0.3%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro rose 0.1% to $1.1293
- The British pound rose 0.3% to $1.3251
- The Japanese yen was little changed at 113.70 per dollar
Bonds
- The yield on 10-year Treasuries advanced two basis points to 1.44%
- Germany’s 10-year yield advanced three basis points to -0.34%
- Britain’s 10-year yield advanced four basis points to 0.81%
Commodities
- West Texas Intermediate crude rose 1% to $69.33 a barrel
- Gold futures were little changed
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