U.S. Futures, Stocks Swing; Bonds Rise After ECB: Markets Wrap

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(Bloomberg) — U.S. equity futures fluctuated alongside stocks in Europe on Thursday as investors digested the latest signals from some of the world’s major central banks. The held steady and bonds in the region climbed as European policy makers kept rates unchanged.

Contracts on the index swung from a gain to a loss a day after the underlying gauge rose for the first time this week in the wake of the Federal Reserve’s final policy gathering of the year. The yield on Treasuries fluctuated around 1.8% amid bets the bar will be high for any future U.S. rate hikes.

The Index reversed an earlier advance. Government bond yields in the region dropped and the euro was little changed after the ECB said it would maintain bond buying and keep rates low until it gets near its inflation goal. The fluctuated after Switzerland’s central bank left rates unchanged and reiterated a threat to intervene in currency markets if needed. The reversed a gain as voting in the U.K. general election continued.

The Fed’s outlook was taken as mildly bullish on Wednesday for both Treasuries and stocks, while the ECB’s dovish outlook was widely anticipated. Thursday may also bring news on the outlook for a trade deal between the U.S. and China, as President Donald Trump is expected to meet with his team, according to people familiar with the talks.

“The fact is the big event risk remains in place, with the world watching to see if the 15% tariffs kick in,” Chris Weston, head of research at Pepperstone Group Ltd., said in a note Thursday. “What the Fed has delivered is about as much as we could have hoped for in this period.”

Earlier in the day, equities in Hong Kong and Seoul outperformed, while they slipped in Tokyo, Shanghai and Sydney. The Hong Kong dollar climbed into the stronger half of its trading band against the greenback for the first time since July. In the Middle East, Saudi Aramco shares jumped for a second day, pushing the oil giant’s value beyond the $2 trillion mark.

Elsewhere, futures rose. The gained as the Turkish central bank delivered another interest-rate cut that exceeded forecasts.

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