- US stock futures jumped Monday as fears about the global economy eased, with S&P 500 contracts gaining more than 1%.
- Chinese authorities eased coronavirus restrictions in Beijing, boosting the country’s growth prospects.
- Meanwhile, oil prices rose after Saudi Arabia hiked its crude prices in a sign of confidence.
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US futures and global stocks rallied on Monday as investor fears about the global economy eased after China tried to ease coronavirus restrictions and Friday’s strong US jobs report.
S&P 500 futures were up 0.98%, Dow Jones futures were up 0.77% and Nasdaq 100 futures were up 1.28% as of 6:10 a.m. ET.
In Asia, China’s CSI 300 stock index rose 1.87% overnight, while Hong Kong’s Hang Seng gained 2.56%, with technology stocks doing particularly well. Europe’s Stoxx 600 index rose 0.9% in morning trade.
Britain’s FTSE 100 index rose 1.38% despite news that Prime Minister Boris Johnson will face a confidence vote later in the day after months of scandals surrounding lockdown busting parties.
Investor concerns about the global economy have haunted markets in recent weeks, with speculation mounting that central banks will trigger recessions by raising interest rates to deal with soaring inflation.
But China further eased lockdown restrictions on Monday, a move that calmed fears that the government’s strict zero-COVID policy would continue to weigh on the manufacturing powerhouse’s growth.
“China announced further easing of restrictions in Beijing over the weekend, leading some Asian stock markets and US futures to trade in positive territory,” Jeffrey Halley, an analyst at currency firm Oanda, said in a note.
A stronger-than-expected monthly US jobs report on Friday allayed fears about a
recession
in the largest economy in the world. However, stocks fell on the day as traders predicted the data could mean so
federal reserve
must raise interest rates further.
Economists at Goldman Sachs said Monday they expect the Fed to cool inflation without plunging the US economy into recession, although they said growth was likely to slow sharply.
Oil prices edged up Monday after Saudi Arabia hiked prices for crude oil sales to Asia more than expected. Traders took the move as a sign that supply remains tight relative to demand.
Brent crude rose 0.86% to $120.75 a barrel after rising around 50% since the start of the year, with Russia’s invasion of Ukraine pushing prices higher. WTI Crude Oil rose 0.83% to $119.88 a barrel.
European oil companies could start shipping Venezuelan oil to Europe as early as July, Reuters reported on Sunday, citing people familiar with the matter. The move would resume oil-for-debt swaps, which were halted in the 2019 US sanctions.
Elsewhere, US bond yields edged higher as traders assessed the strength of the economy. Yields, which move inversely with prices, had fallen in recent weeks as economic concerns mounted and investors snapped up safe-haven assets.
The yield on the top 10-year US Treasury rose 2.7 basis points to 2.966%.
Meanwhile, the dollar index fell 0.20% to 101.94.
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