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Stocks, Futures Climb; Retail Ardor Boosts Silver: Markets Wrap

(Bloomberg) -- Asian stocks climbed with U.S. and European equity futures Monday as concern over volatile retail trading receded and steps by China to ease a cash crunch bolstered sentiment. Silver futures surged.A gauge of Asian stocks rose by the most in about three weeks. S&P 500 contracts reversed an earlier slide to trade higher with European futures. The mood brightened from Friday, when U.S. shares tumbled as traders fretted about the impact of short-squeezes stirred up on internet forums. Silver futures advanced 7% after the metal became the latest focus of such chatter.The offshore yuan slipped amid mixed economic data and after the People’s Bank of China injected funds in an effort to avoid a liquidity squeeze. The dollar edged lower and the yield on 10-year Treasuries ticked higher. Oil gained.Investors mulled data showing factory activity across much of Asia continued to hold up in January even as China’s output showed signs of moderating. Global stocks retreated last week, both on the havoc caused in pockets of the U.S. market by retail investors, as well as on concern that a patchy vaccine rollout is a risk for the nascent global recovery from the pandemic.“Risk sentiment is trying to return to its typical bias,” said Stephen Innes, chief market strategist at Axi, adding investors are attempting to “walk the path of least resistance again.”Silver spiked after retail sites were overwhelmed with demand for bars and coins at the weekend. Comments on Reddit forum r/WallStreetBets suggested people buy exchange-traded funds linked to the metal because prices have been kept artificially low.In the U.S., 10 Republican senators have proposed an alternative plan for Covid-19 stimulus costing about $600 billion. On the virus front, infections continued to show a slowing trend across many regions of the world, including in the U.S., though concerns remain about new variants.Elsewhere, Indian stocks jumped after the government unveiled an expansionist budget in a bid to spend its way out of the pandemic-induced slump.These are some key events coming up:Earnings season is full steam ahead as companies report results, including Alibaba, GlaxoSmithKline, Ferrari, Exxon Mobil, BNP Paribas and Yum! Brands.The Reserve Bank of Australia’s policy decision comes Tuesday.Wednesday sees the EIA crude oil inventory report.The Bank of England sets rates on Thursday and an Indian central bank policy decision comes then too.The U.S. January payrolls report is due Friday, providing a first look at hiring in 2021.Here are the main moves in markets:StocksS&P 500 futures gained 0.5% as of 7:20 a.m. in London. The gauge fell 1.9% on Friday.Japan’s Topix index rose 1.2%.South Korea’s Kospi added 2.7%.Hang Seng Index rose 2.2%.Shanghai Composite Index added 0.6%.Euro Stoxx 50 futures gained 0.6%.CurrenciesThe yen traded at 104.67 per dollar.The offshore yuan was at 6.4612 per dollar, down 0.1%.The Bloomberg Dollar Spot Index fell 0.1%.The euro bought $1.2125, dropping 0.1%.BondsThe yield on 10-year Treasuries was at 1.08%.Australia’s 10-year yield rose two basis points to 1.15%.CommoditiesSilver futures rose 6.9% to $28.83.West Texas Intermediate crude added 0.5% to $52.45 a barrel.Gold rose 0.8% to $1,862.57 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.