Stocks rebound after days of decline, oil steadies

Sydney - European stock futures climbed, taking impetus from Asian equities which rebounded after four days of declines. Oil steadied near $55 a barrel and gold eased for a second day.

The Euro Stoxx 50 jumped after shares in Japan advanced, with the Topix index ending its longest losing streak this year. Benchmarks were also higher in Seoul, Hong Kong and Sydney. The Korean won strengthened to its highest level in more than a year. China’s central bank boosted the supply of cash in the system by the most since January amid a decline in bonds and stocks.

US inflation data on Wednesday has done little to alter the likelihood of the Federal Reserve lifting interest rates again next month, as core prices picked up in October, and retail sales indicated resilient demand heading into the holiday shopping season.

As equity-market volatility measures have been climbing, investors will be reminding themselves that global growth remains healthy and earnings forecasts strong.

In the Asia-Pacific region, Australia reported a smaller gain in jobs than forecast for October. The People’s Bank of China injected a net 310 billion yuan through reverse-repurchase agreements on Thursday, the biggest one-day addition since January 18. The cash injections come after the benchmark 10-year yield surged past 4% for the first time in three years on Tuesday.

The US tax plan is encountering stumbling blocks, with some opponents coming out against aspects of the proposals ahead of a Thursday vote on the tax-overhaul bill. The S&P 500 Index pared the worst of Wednesday’s losses as bank shares rallied, but that wasn’t enough to overcome the biggest drop in two months for US equities.

Here are some key events slated for the remainder of this week:

• Bank of England officials address the bank’s future on Thursday, while European Central Bank chief Mario Draghi speaks on Friday.

• A string of Fed appearances may further illuminate the FOMC’s commitment to a December hike.

And these are the main moves in markets:

Stocks

• Euro Stoxx 50 contracts jumped 0.5% at 8:33, while futures on the S&P 500 Index were up 0.3%.

• The underlying gauge fell 0.6% on Wednesday.

• The Topix climbed 1% at the close in Tokyo after sinking the most since March on Wednesday.

• The Nikkei 225 Stock Average rallied 1.5%.

• South Korea’s Kospi index climbed 0.7%.

• Hong Kong’s Hang Seng Index added 0.7%, while the Shanghai Composite Index was little changed. 

• The MSCI Asia Pacific Index jumped 0.8% after four days of declines.

Currencies

• The Bloomberg Dollar Spot Index was little changed, after touching the lowest in almost four weeks on Wednesday.

• The won jumped past 1 100, rising as much as 1.2% against the dollar.

• The Japanese yen was at ¥113.18/$, after rising 0.5% on Wednesday.

• The euro was steady at $1.1780.

Bonds

• The yield on 10-year Treasuries was steady at 2.34%. It declined five basis points in the previous session.

• Australia’s 10-year yield dipped one basis point to 2.58%, around the lowest since the end of June.

Commodities

• WTI crude was steady at $55.39 a barrel after dropping 0.7%.

• Gold declined for a second day, losing 0.2% to $1 276.1 an ounce.

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