Asia's COVID control tempers global stock selloff, U.S. futures jump

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Asian stock markets fell on Thursday but not as sharply as Wall Street's rout overnight, while oil bounced off lows and U.S. futures jumped, as Asia's brighter economic outlook offset investor worries about fresh COVID-19 lockdowns in Europe.

S&P 500 futures and Dow futures rebounded 1%, which traders attributed to heightened volatility and to the less gloomy mood around Asia as China’s economy builds up steam.

Oil rose from a four-month low overnight and the risk-sensitive Australian and New Zealand dollars rose about a quarter of a percent. “Until yesterday the market was travelling with the hope the improvement of health care services in dealing with the pandemic would prevent the introduction of severe lockdowns,” National Australia Bank FX strategist Rodrigo Catril said in a note.

Investors expect the European Central Bank to hold off on new measures and instead hint at action in December, which is likely to keep a lid on the euro. “Any disappointment in these numbers may have a magnified market impact, given the current weakness,” said CMC Markets’ Sydney-based strategist, Michael McCarthy.

 

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