Equities Rebound, Coronavirus Fears Ease, China Plans Stimulus

The U.S. Futures Are Up In Early Trading

The U.S. index futures are up in early trading pointing to a solidly higher open for the equity markets. The Dow Jones Industrial Average and S&P 500 are both up about 1.25% while the NASDAQ leads them higher. The tech-heavy NASDAQ Composite is up 1.50% aided by strength in Tesla. Shares of Tesla surged another 13% in early action following Monday’s near-20% gain. The electric car maker has received another round of analysts upgrades with price targets in the $800 range.

In health news, the coronavirus death total is not over 425 with the first reported death outside of mainland China. A man in his thirties was reported to have succumbed to the virus in Hong Kong. There are now over 20,670 known cases.

In earnings news, shares of Google parent Alphabet are down more than -3.0% in early trading. The Internet giant reported mixed results on weaker than expected ad revenue. Shares of Ralph Lauren are up more than 6% after the fashion brand beat consensus estimates. Royal Caribbean also saw its shares move higher after beating on the top and bottom line.

EU Markets Rise, Brexit Drama Begins To Heat Up Again

The EU markets are broadly higher at midday despite signs of a contentious Brexit negotiation period this year. The DAX, CAC and FTSE are all up about 1.4% at midday. On Monday, the EU and UK laid out their respective goals for the final Brexit negotiation and obvious hurdles have already arisen. On the brighter side, there are also some notable areas of common ground.

In earnings news, shares of AMBU are up 20% after reporting results. The health product company saw an unexpected double-digit rise in quarterly earnings. Shares of Micro Focus are moving in the opposite direction after its chairman resigned citing difficult conditions. Iconic beer-maker Carlsberg reported inline with expectations but gave favorable guidance and shares rose 2.8%.

Asian Markets Rebound In A Session of Cautious Trading

Asian markets rebound in Tuesday’s session although there was an air of caution. the Korean Kospi led with an advance of 1.84% while markets in China and Hong Kong gained about 1.30%. The Nikkei and Australian ASX saw smaller advances but still posted gains. In Australia, the RBA decided no policy change was needed. The RBA’s governor says an extended period of low rates is needed to bring the nation to full-employment.