U.S. equity futures advanced with European stocks as markets tried to stabilize following the worst Wall Street session since 1987. Most Asian benchmarks remained in the red, with investors still worried that emergency fiscal and monetary packages won’t be enough to stave off a global slowdown.

S&P 500 contracts reversed a drop to climb as much as five per cent, while the Stoxx Europe 600 Index rose as various regulators including those in Italy and Spain banned short-selling on some stocks. Roche Holding AG climbed after saying it won emergency approval in the U.S. for a highly automated coronavirus test, potentially speeding up the ability to diagnose patients by a factor of 10.

Asia’s biggest equity benchmarks pared steep declines, though only those in Sydney and Mumbai gained. South Korea will ban short selling for six months. Ten-year Treasuries fluctuated, and sovereign bonds sank in much of Asia and Europe. Oil pushed higher, and the dollar edged up, advancing for a fourth day versus a basket of its biggest peers.

Global equities are heading for their worst week since 2008 as investors price in a severely weaker economic outlook due to the coronavirus pandemic. They’re doubting the efficacy of policy responses as cases continue to grow across the world and restrictions on people and businesses crush sentiment. The Bank of Japan on Friday followed an earlier move from the Federal Reserve to inject liquidity, and later offered to buy US$1.9 billion of bonds in an unscheduled operation.

“Everyone wants to go to cash,” Kieran Calder, head of equity research for Asia at Union Bancaire Privee, told Bloomberg TV.

New York City has declared a state of emergency, France and Portugal said they will close all schools and a leading U.S. infectious disease official said the testing system in that country is failing. Walt Disney Co. is shutting its Disneyland resort in California from Saturday, following previous closures in Asia.

These are the main moves in markets

Stocks

  • Futures on the S&P 500 Index rose 3.2 per centas of 9:18 a.m. London time.
  • The Stoxx Europe 600 Index climbed 1.9 per cent.
  • The MSCI Asia Pacific Index dipped 1.9 per cent.
  • The MSCI All-Country World Index climbed 0.2 per cent.

Currencies

  • The Bloomberg Dollar Spot Index increased 0.1 per cent.
  • The euro increased 0.1 per cent to US$1.1195.
  • The British pound gained 0.2 per cent to US$1.2596.
  • The Japanese yen weakened 1.3 per cent to 105.98 per dollar.
  • The Mexican peso strengthened 0.7 per cent to 21.7794 per dollar.

Bonds

  • The yield on 10-year Treasuries increased five basis points to 0.85 per cent.
  • The yield on two-year Treasuries decreased two basis points to 0.46 per cent.
  • Germany’s 10-year yield gained nine basis points to -0.65 per cent.
  • Japan’s 10-year yield rose 11 basis points to 0.054 per cent.

Commodities

  • West Texas Intermediate crude jumped 4.4 per cent to US$32.88 a barrel.
  • Iron ore increased 1.4 per cent to US$88.40 per metric ton.
  • Gold strengthened 0.7 per cent to US$1,586.68 an ounce.
  • LME zinc jumped 3.9 per cent to US$2,014 per metric ton.

--With assistance from Gregor Stuart Hunter, Cormac Mullen and Adam Haigh.