Stock Rout Eases on Trade Pledge; Pound Advances

European and Asian stocks dropped on Wednesday following the rout on Wall Street, though declines were contained and U.S. equity futures rose after China pledged to start delivering on trade agreements reached with America. The pound gained as traders weighed the latest on Brexit.

Global markets were left reeling following Tuesday’s steep sell-off in New York, but nerves appeared to steady after China’s Commerce Ministry said Beijing will start to quickly implement specific items where there’s consensus with the U.S. and will push forward on trade negotiations within the 90-day “timetable and road map.” While the Stoxx Europe 600 Index slumped 1.2 percent, that was far less than the 3.2 percent plunge recorded by the S&P 500 a day earlier. Futures for America’s benchmark gauge advanced, though the U.S. market is closed on Wednesday to mark the death of President George H. W. Bush.

Stocks fell in Japan, Korea, Australia and Hong Kong, and China’s yuan gave up some of its recent surge. The pound edged higher as investors digested legal advice over Prime Minister Theresa May’s Brexit deal, which confirmed that the so-called customs backstop — the insurance mechanism that kicks in if the Irish border issue cannot be resolved — could remain “indefinitely.” Benchmark German bunds rose before reversing, while Italian bonds jumped on mounting optimism for a positive end to the country’s budget spat with the EU.

Futures on the S&P 500 Index gained 0.6 percent as of 2:29 p.m. London time. The Stoxx Europe 600 Index sank 1.2 percent to the lowest in more than a week on the biggest tumble in six weeks. The U.K.’s FTSE 100 Index sank 1.4 percent to the lowest in more than eight months on the largest tumble in almost eight weeks. Germany’s DAX Index decreased 1.2 percent to the lowest in more than a week on the biggest dip in more than two weeks. The MSCI Asia Pacific Index decreased 1.1 percent to the lowest in a week on the largest dip in more than two weeks. The MSCI Emerging Market Index decreased 1.3 percent, the biggest dip in more than two weeks.