GLOBAL ROUT EBBS AS S&P 500 FUTURES ADVANCE WITH OIL, GLENCORE

Financial markets showed signs of stabilizing after a rout Monday wiped $800 billion off global equities.

U.S. equity-index futures climbed, signaling the Standard & Poor’s 500 Index may halt five days of losses. Gains by crude oil and copper helped send the currencies of commodity-producing nations higher. The Stoxx Europe 600 Index pared its decline asGlencore Plc-- which plunged 29 percent on Monday -- rebounded.

“We may have seen the worst of the selling," said James Buckley, a money manager who oversees about $43 billion at Baring Asset Management in London. “The greater macro uncertainty led by, but not exclusive to, China has really spooked investors. We’re trying to take a longer view.”

The rebound underscores the dynamic pitting investors concerned by a slump in commodities and the slowdown in China against those who see U.S. strength as sufficient to sustain global growth. Economic confidence this month in the euro region surpassed analysts’ estimates, while a report later Tuesday may show the U.S. housing market continuing to gather momentum.

S&P 500 E-mini futures expiring in December advanced 0.4 percent at 10:21 a.m. in London, after the gauge gave up 2.6 percent yesterday. West Texas Intermediate crude climbed 0.8 percent to $44.80 a barrel, following Monday’s 2.8 percent drop, and Glencore jumped 8.8 percent.

Commodities

Brent crude rose 0.8 percent at $47.70 a barrel. U.S. stockpiles are forecast to drop for a third week, a Bloomberg survey of analysts showed before government data on Wednesday.

Copper for delivery in three months rose 0.1 percent, on course to halt a five-day decline, the longest run in more than a month. Zinc and lead also advanced.

Precious metals extended declines, with gold retreating 0.5 percent to $1,125.80 an ounce and set for the biggest three-day loss in a month. Platinum fell 1.2 percent to the lowest level in six years.

Currencies

Norway’s krone advanced against all but one of its major peers as currencies from oil exporting countries rallied. The krone gained 0.4 percent to 8.5004 per dollar, after sliding to 8.6017 on Monday, the weakest since April 2002. The Swedish krona also advanced, while South Africa’s rand added 0.3 percent to 14.0248 per dollar. The rand earlier touched 14.1588, the lowest since Bloomberg began collecting the data in 1971.

Stocks

The Stoxx 600 pared a decline of as much as 1.8 percent and was 0.5 percent lower. Commodity producers rebounded from their weakest since 2009. 

The slide has left the MSCI All-Country World Index trading at its lowest level in two years, with the value of global equities falling to $59.8 trillion, the least since February 2014.

Emerging Markets

Indian bonds and stocks rallied on Tuesday after the central bank cut interest rates more than economists forecast and the nation relaxed curbs on foreign ownership of its debt. The yield on government bonds due May 2025 fell 14 basis points to 7.59 percent and the Sensex advanced 1.3 percent. The rupee was little changed after falling as much as 0.6 percent.

source: Bloomberg