US equity index futures markets surged more than 1% Tuesday morning bolstered by news that China’s central bank will be stepping in to help steady Asian markets. 1.7 trillion yuan ($242.74 billion) was added to the Chinese economy helping to alleviate recent losses resulting from fears surrounding the emerging coronavirus epidemic.
Stock indexes in the US rose sharply as the news carried from Asian to European and American markets. Below is a look at markets this morning:
- Micro E-mini S&P 500 Futures (MES): 1.62%
- Micro E-mini Dow Futures (MYM): 1.58%
- Micro E-mini Nasdaq Futures (MNQ): 2.05%
- Micro E-mini Russell 2000 Futures (M2K): 1.39%
Agricultural futures also surged Tuesday morning on farmers’ expectations for improved trade with China. The Phase One Trade Agreement signed last month has elevated near-term market sentiment regarding agricultural exports to China.
- Soybean Oil Futures (ZL): 2.11%
- Oat Futures (ZO): 1.33%
- Wheat Futures (KE): 1.18%
The chart above, created for FREE using the NinjaTrader platform, displays daily price action for Micro E-mini Nasdaq futures from late July of 2019 when a golden cross occurred. Since then the trend has largely been bullish with a volatile past week.
With volatility returning to markets in recent weeks, traders should always be prepared for unexpected market swings and explore risk mitigation techniques such as stop loss orders.