Stocks, Futures Gain on Trump Prognosis; Oil Jumps: Markets Wrap

(Bloomberg) -- U.S. futures climbed with global stocks on optimism over economic stimulus and that President Donald Trump may soon leave the hospital.

Consumer companies and banks led a broad advance among European stocks. Equities in Asia notched gains, while crude oil rebounded from a three-week low. The yen retreated and Treasuries were steady.

In U.S. premarket trading, Regeneron Pharmaceuticals Inc. rallied after Trump was given an experimental antibody treatment made by the drugmaker. Apple Inc., Tesla Inc. and Microsoft Corp. also rose.

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A member of Trump’s medical team said Sunday that the president could be released from hospital as soon as Monday after treatment for Covid-19. But Trump’s condition remains clouded by confusion, with the president’s effort to show strength contradicted by conflicting accounts from his doctors.

“As for news around Trump, it will likely continue to cause extra volatility,” said Robert Greil, chief strategist at Merck Finck Privatbankiers AG. “I think this week clear progress or a deal on the next U.S. fiscal program would boost risk appetite the most.”

On the stimulus front, Trump tweeted from hospital that a deal needs to get done. Nancy Pelosi was optimistic on Friday that a bipartisan stimulus bill can be done, and said his diagnosis “kind of changes the dynamic.”

Traders also pointed to polls suggesting a stronger lead for Democrat Joe Biden and the possibility that a clear winner will emerge from the Nov. 3 election. U.S. markets have been nervous in recent weeks about a close election and the risk of a long and messy legal battle.

“Polls are shifting from a close election and prolonged uncertainty to more a dominant Biden and clean succession,” said Peter Rosenstreich, head of market strategy at Swissquote Bank SA. “That is reducing uncertainty and increasing risk appetite.”

Elsewhere in markets, the Taiwan dollar closed at the strongest level since 2011 amid speculation the local central bank will loosen its grip on the rallying currency.

In European stocks, Cineworld Group Plc plunged in London after saying it would suspend operations at all its U.S. and U.K. theaters. Weir Group Plc jumped after announcing the sales of its oil and gas division to Caterpillar Inc.

Here are some key events coming up:

The Reserve Bank of Australia is forecast to keep interest rates and its three-year yield target unchanged at 0.25% on TuesdayAlso Tuesday, Fed Chair Jerome Powell and ECB Chief Economist Philip Lane deliver keynote addresses at the NABE conferenceOn Wednesday, the minutes of the Sept. 15-16 meeting of the FOMC could be especially fruitful for Fed watchers, beginning with details of the debate on conditions necessary to trigger a rate increaseThe U.S. Vice Presidential debate takes place in Salt Lake City on WednesdayThough the final formal round of talks is over, the British government expects trade negotiations to continue up to the EU summit in mid-October.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index gained 0.6% as of 7:49 a.m. New York time.The Stoxx Europe 600 Index rose 0.8%.The MSCI Asia Pacific Index jumped 1.3%.The MSCI Emerging Market Index rose 0.7%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.3% to 1,170.57.The euro increased 0.4% to $1.1765.The British pound gained 0.2% to $1.2955.The Japanese yen weakened 0.3% to 105.62 per dollar.

Bonds

The yield on 10-year Treasuries climbed one basis point to 0.71%.The yield on two-year Treasuries rose less than one basis point to 0.13%.Germany’s 10-year yield was unchanged at -0.54%.Britain’s 10-year yield increased one basis point to 0.258%.

Commodities

West Texas Intermediate crude increased 4.5% to $38.67 a barrel.Gold strengthened 0.1% to $1,900.99 an ounce.LME copper fell 0.4% to $6,520 per metric ton.

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