U.S. stocks, futures climb on China, rates optimism - BNN Bloomberg

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Stocks advanced with U.S. futures as favorable news reports from China and data from Europe boosted risk appetite. The dollar fell and Treasuries rose.

Contracts on all three major U.S. gauges rose, while the Stoxx Europe 600 Index saw broad gains. Hong Kong shares rallied as China considered further support for property developers. Alibaba Group Holding Ltd. led premarket gains in US-listed Chinese stocks after Ant Group Co.'s approved fundraising plan spurred bets the country's regulatory clampdown on its internet sector is easing.Tesla Inc.

After a volatile year that saw equities tumble with bonds on worries about inflation and higher interest rates, investors are seeking signs of cooling that will allow policymakers to slow the pace of rate hikes. A report Wednesday showed French inflation unexpectedly slowed, adding to signs of easing price pressure in the euro area.

“If you don't see a deep recession, you see a shallow recession, all that would be the recipe for markets to see a nice rally starting perhaps in the second half,” said Vasu Menon, executive director, investment strategy for OCBC Bank Wealth Management, in an interview with Bloomberg Television. “There is a lot of liquidity on the sidelines waiting to get back into play, waiting for those macro cues.

Traders are also awaiting minutes from the Federal Reserve's last meeting due later Wednesday, and the keenly watched jobs report later this week. Treasuries rose further, after Tuesday's strongest start to a year since 2001.The Australian dollar surged on reports that China is mulling an end to a ban on Australian coal. The yen advanced after the Bank of Japan unveiled further unscheduled bond buying. U.S.

 

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