(Bloomberg) — American and European stock futures climbed and Asian equities saw their best day since 2008 as investors take in strengthening stimulus efforts to counter the hit from the coronavirus.
Futures on the S&P 500 reversed losses from early Wednesday after the White House and Congress reached a deal on a fiscal package of almost $2 trillion. The dollar fell for a second straight day, with central banks around the world now supplying greenbacks through daily operations. Crude oil climbed toward $25 a barrel in New York. The MSCI Asia Pacific Index was up over 5%. Treasuries were flat.
Investors are on watch whether U.S. and global equity indexes can on Wednesday post their first back-to-back daily gains since mid-February. The number of infections globally continues to accelerate and many of the largest economies are grinding to a halt.
On Tuesday, the Dow Jones Industrial Average rose more than 11% to clock its biggest advance since 1933, while the S&P 500 climbed the most in 12 years. Still, key gauges of U.S. manufacturing and services in March fell the most on record, showing the deep toll the pandemic has already taken.
“We still need to see a slowing of the virus cases and a peaking in the U.S., because until then we’ll have these huge relief-rally days,” Carol Pepper, chief executive officer at Pepper International, told Bloomberg TV. “Then we’ll get a scary day and the market will plunge down again.”
Meantime, in India, where stocks underperformed on Wednesday, there is a three-week national lockdown.