U.S. Equities Advance for Third Day as Angst Over China Abates

U.S. stocks rose for a third day, continuing to rebound after a turbulent start to the year erased as much as $ 1.7 trillion from equities.

The Standard & Poor’s 500 Index added 0.4 percent to 1,946.66 at 9:32 a.m. in New York, after climbing 0.8 percent on Tuesday.

In a volatile session yesterday, the S&P 500 capped its first back-to-back advance in three weeks, as traders assessed China’s efforts to tame the financial-market turmoil that sent equities to the steepest weekly drop since 2011.

Concern that turbulence in China’s stocks and currency will spread to the global economy just as the Federal Reserve is increasing borrowing costs has spurred declines in markets in 2016. The S&P 500 posted its worst-ever start to a year, sliding 6 percent last week. The benchmark has slipped 9 percent through Tuesday from its record set in May, and was 3.8 percent above the bottom of an August swoon, which was also sparked by anxiety over the impact of China’s weakness on worldwide growth.

 

Source : Bloomberg

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U.S. Index Futures Signal Three-Day Relief as China Angst Eases

U.S. index futures indicated an equity rebound will extend to a third day after a turbulent start to the year erased as much as $ 1.7 trillion from stocks.

Contracts on the Standard & Poor’s 500 Index expiring in March added 1 percent to 1,943.75 at 9:35 a.m. in London. In a volatile session yesterday, the equity gauge capped its first back-to-back gains in three weeks, as traders assessed China’s efforts to tame the financial-market turmoil that sent the S&P 500 to its steepest drop since 2011 last week. Dow Jones Industrial Average futures rose 143 points, or 0.9 percent, to 16,506, today.

Concern that turmoil in China’s stocks and currency will spread to the global economy just as the Federal Reserve is increasing borrowing costs has spurred declines in markets in 2016. The S&P 500 posted its worst-ever start to a year, sliding 6 percent last week. Fed Bank of Boston President Eric S. Rosengren and Fed Bank of Chicago President Charles Evans are scheduled to speak today. The Fed also releases its Beige Book survey of economic conditions.

After this year’s selloff brought S&P 500 valuations down to levels last seen in 2014, investors will be turning their attention to corporate earnings, with JPMorgan Chase & Co., Intel Corp., and Citigroup Inc. scheduled to post their quarterly results this week. Analysts estimate profits for S&P 500 members fell 6.7 percent last quarter.

Among shares moving on corporate news, Ford Motor Co. lost 1.2 percent in premarket New York trading on concerns that its North American profit margins may contract this year.

Source: Bloomberg

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