US stock futures climbed, building on the initial gains Wall Street recorded after a volatile Monday. Dow (INDU) futures were last up 350 points, or 1.4%. S&P 500 (SPX) and Nasdaq (COMP) futures increased 1.1% and 1%, respectively.
The Fed on Monday finally launched its Main Street Lending Program to help small and medium-sized businesses, and it also committed to buying corporate bonds — the latter of which should support market liquidity and help large companies' availability of credit.
"The timing was accidental rather than deliberate," wrote Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, in a research note. "But with the Federal Reserve back in business backstopping corporate credit, and printing money to lend to companies directly, it was immediately back to business as usual for the peak-virus, buy everything herd."
Asia followed Wall Street higher, erasing steep losses from Monday. Japan's Nikkei (N225) closed up 4.9%, expanding earlier gains after the Bank of Japan kept interest rates unchanged, while saying that it would closely monitor the impact of Covid-19 and "will not hesitate to take additional easing measures if necessary."
South Korea's Kospi (KOSPI) jumped 5.3% after recording its worst day since March on Monday. The Korean index finished with its best day since March, when markets were also gripped by volatility. Hong Kong's Hang Seng Index (HSI) advanced 2.5%, while China's Shanghai Composite (SHCOMP) added 1.4%.
European stocks moved higher in early trading. France's CAC 40 (CAC40) gained 2.2%, while Germany's DAX (DAX) advanced 2.4%. The FTSE 100 (UKX) added 2.3% in London after data showed the UK unemployment rate remained unchanged at 3.9% in April even as other indicators suggested the labor market has weakened dramatically.
In oil trading, US crude futures erased earlier losses and inched up 0.1% during Tuesday afternoon trading in Asia. Prices were last trading at $37.14 per barrel. Futures for Brent, the global oil benchmark, also reversed course and rose 0.1% to $39.76 per barrel. The two contracts settled higher on Monday, both up by more than 2%.
Looking ahead, US retail sales and industrial production data are scheduled for release on Tuesday. Fed Chairman Jerome Powell will testify in front of Congress this week.
— Anneken Tappe and Charles Riley contributed to this report.
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June 16, 2020 at 02:55PM
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Asian stocks and US futures rally after Fed moves calm markets - CNN
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