“It’s Hard To Become Too Bearish”: Futures Surge Amid Optimism Selloff Has Gone Too Far

US stocks future indexes rose on Monday following Friday’s gains and tracking major gains in European and Asian markets amid optimism that the recent selloff in equity markets is overdone. The dollar weakened and Treasury yields rose. The pound strengthened on hopes that U.K. and European Union officials will be able to make progress as a key week of Brexit talks begins, while the Turkish lira crashed to a new all time low on fears the country would be dragged into the sudden breakout of war between Armenia and Azerbaijan.

Hopes of a global economic recovery were supported by data showing continued growth in China’s industrial profits, despite fresh concerns that China’s data is once again being manipulated for political purposes with profits diverging massively from PPPI.

Shares of American Airlines, United Airlines, cruise operators Royal Caribbean Cruises Ltd and Carnival Corp rose between 2.5% and 5.6% in premarket trading as sentiment on covid-linked names reversed despite a continued rise in officially reported cases. The global death toll from Covid-19 will likely pass 1 million today, with cases already above 33 million. The milestone will be passed as governments continue to struggle to contain the disease, with authorities in many countries imposing or extending measures. The Times in London is reporting that the city may be forced into another lockdown. New York officials are concerned about localized spikes in infections, even as the city-wide rate remains low.


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