Global Stocks Show Signs of Steadying
10 February 2016 - 8:50PM
Dow Jones News
Global stocks showed signs of steadying Wednesday following a
steep selloff, although markets in Asia remained under
pressure.
Futures pointed to a 0.3% opening gain for the S&P 500.
Changes in futures don't necessarily reflect market moves after the
opening bell.
The Stoxx Europe 600 was up 1.1% in early trade, led by the
banking sector, after Wall Street stabilized late in the previous
session.
The pan-European index had closed Tuesday at its lowest level
since October 2013, as steep declines in banking shares sent
European markets down for a seventh consecutive session.
On Wednesday, Europe's banking sector gained 3% in early trade,
but remained down roughly 25% for the year.
Earlier, Japan's Nikkei Stock Average fell 2.3% to its lowest
closing level since late 2014, as the yen remained near its
strongest level against the dollar in over a year. A rising yen
makes Japanese exports less competitive and reduces the value of
repatriated profits.
Despite the Bank of Japan's decision last month to introduce
negative interest rates, a policy that tends to weaken the local
currency, the yen has strengthened in recent sessions to levels not
seen since 2014. The dollar was last up 0.1% against the yen at ¥
115.00.
Australia's S&P ASX 200 fell 1.2% to land in bear market
territory as energy stocks caught up with Tuesday's drop in oil
prices.
Markets elsewhere in Asia were closed for the Lunar New Year
holiday.
In commodities, Brent crude oil was last up 2.4% at $31.05 a
barrel in thin trade on speculation about possible production cuts,
but remains down nearly 9% for the week and roughly 19% for the
year.
Wednesday's moves followed another volatile session on Wall
Street. U.S. stocks steadied late in the afternoon, but investors
remained nervous amid another sharp fall in oil prices and mounting
fears around global growth.
Later Wednesday, Federal Reserve Chairwoman Janet Yellen begins
her two-day testimony for her semiannual report to Congress.
Investors will listen closely for any comments on recent turmoil in
stock markets and a further slide in the oil price as they assess
her position on interest rates.
Low interest rates have supported global equity markets in
recent years.
"The chair will, in our view, leave the door open for [a rate
rise at the next Fed meeting in] March without providing a strong
signal in either direction," strategists at Barclays wrote in a
note.
In other currencies, the euro was down 0.1% against the dollar
at $1.1282.
Spot gold in London was down 0.2% at $1188.05 an ounce, while
three-month copper futures on the London Metal Exchange fell 0.7%
to $4,463 a ton.
Write to Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
February 10, 2016 04:35 ET (09:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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