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Bloomberg
US equity futures advanced with stocks in Europe as investors kept an eye out for fresh signs of progress in America-China trade negotiations. Treasuries were steady.
Contracts on the S&P 500 Index rose, signalling the benchmark would head towards a fifth straight record on Tuesday. In earnings news, Kohl’s Corp tumbled in pre-market trading along with Home Depot after both retailers cut guidance. Mining and automaker shares led the Stoxx Europe 600 Index higher, boosted by data showing the region’s car sales jumped in October.
In Asia, equities fell in Tokyo and climbed in Shanghai. Government bonds slipped in Europe, while oil futures declined in New York.
The dollar fluctuated against its major peers after President Donald Trump said he “protested†US interest rates that he considers too high relative to other developed countries, in a meeting with Federal Reserve chairman Jerome Powell at the White House. The Fed said Powell’s remarks were “consistent†with his recent public comments.
While investors have turned more optimistic on risk assets this week, they remain sensitive to any developments on trade after months of closely watched negotiations. Word that the White House would extend a license to allow US companies to do business with Chinese telecom firm Huawei Technologies Co competed with reports suggesting Beijing was skeptical about reaching a broad deal anytime soon.
One challenge for developed-market stocks comes from the MSCI World Index’s 21% advance this year, which has propelled the benchmark to its highest estimated price-earnings ratio since 2017.
“We don’t think that there is much scope for global equities to receive a further boost from a trade deal along the lines of what is being reported,†Simona Gambarini, a markets economist at Capital Economics, wrote in a note.
US economic indicators due for release include initial jobless claims on Thursday.
Britain was expected to hold its first televised leadership debate before next month’s election on Tuesday.
Federal Reserve speakers this week include district bank presidents John Williams, Loretta Mester and Neel Kashkari.
European central bankers speaking this week include European Central Bank President Christine Lagarde, Bundesbank chief Jens Weidmann, along with Yves Mersch, Luis de Guindos, Pablo Hernandez de Cos and Philip Lane. China announces its loan prime rates, a benchmark for borrowing costs, on Wednesday.
The Stoxx Europe 600 Index climbed 0.5% in New York. Futures on the S&P 500 Index advanced 0.2%. Italy’s FTSE MIB Index climbed 0.4%.
The MSCI Emerging Markets Index rose 0.5%.
The Bloomberg Dollar Spot Index was little changed. Sterling dipped 0.1% to 0.8559 per euro. The euro increased 0.1% to $1.1078. The Japanese yen was little changed at 108.71 per dollar.
The yield on 10-year Treasuries fell less than one basis point to 1.81%. Germany’s 10-year yield climbed one basis point to -0.33%. Italy’s 10-year yield increased one basis point to 1.217%. Australia’s 10-year yield declined four basis points to 1.1325%.
West Texas Intermediate crude decreased 0.9% to $56.52 a barrel. LME nickel fell 2.1% to $14,530 per metric ton. Gold declined 0.2% to $1,468.24 an ounce. Iron ore increased 1.1% to $84.24 per metric ton.