US futures surge as stocks mixed; dollar edges higher

Bloomberg

US equity-index futures rose while stocks drifted in Europe and declined in Asia as investors struggled to interpret the latest developments in the trade rivalry between the world’s two largest economies. Treasuries and European bonds slipped.
Contracts on the three main equity indexes all signalled a firm open in New York, and a dollar gauge inched higher after the US issued a partial — and qualified — denial that it was discussing new limits on Chinese access to American finance. The Stoxx Europe
600 Index struggled for direction, while Japan’s stock market slid. Chinese equities fell in the final session before a week-long holiday.
Sovereign bonds in the US and Europe edged lower after Germany’s labor market unexpectedly improved. West Texas oil fell further below $56 a barrel. Gold dipped for a second day, though it was still set for a fourth quarterly gain.
The month of September saw foreign-trade uncertainty once again muddying the outlook for investors. Citigroup said that restricting access to US finance would amount America’s most extreme potential move against China, while a Treasury official said that the US has no plans “at this time” to stop Chinese companies from listing on American exchanges. Beijing vowed to keep opening up its financial markets and encouraging foreign investment, while releasing a positive report on manufacturing.
“The equity market has absorbed a lot in the last 12-18 months, however news like this isn’t great for confidence,” Jun Bei Liu, fund manager at Tribeca Investment Partners, told Bloomberg TV in Sydney.
Elsewhere, the pound was range bound as Prime Minister Boris Johnson fought off allegations of sexual impropriety and plots in parliament to oust him over his Brexit plans. Financial markets and offices in Taipei closed on Monday due to the approach of Typhoon Mitag.
Australia’s monetary policy decision is set for Tuesday, with markets and economists leaning toward a third interest-rate cut for 2019.
Euro-zone CPI for September is scheduled for Tuesday. There’s a slew of US data including ISM manufacturing on Tuesday, the ADP employment report on Wednesday and the monthly government jobs report on Friday. The Reserve Bank of India sets policy on Friday.
Futures on the S&P 500 Index climbed 0.3 percent in New York. The Stoxx Europe 600 Index advanced 0.1 percent. The UK’s FTSE 100 Index dipped 0.3 percent. The Shanghai Composite Index declined 0.9 percent.
The Bloomberg Dollar Spot Index climbed 0.1 percent. The British pound increased 0.1 percent to $1.231. The euro declined 0.3 percent to $1.0907. The Japanese yen was little changed at 107.93 per dollar.
The yield on 10-year Treasuries increased one basis point to 1.69 percent. Britain’s 10-year yield fell less than one basis point to 0.496 percent. Germany’s 10-year yield climbed one basis point to -0.57 percent. Australia’s 10-year yield advanced seven basis points to 1.0215 percent.
West Texas Intermediate crude sank 1 percent to $55.34 a barrel.