Stocks in Europe, Asia climb with US futures on trade hopes

Bloomberg

Stocks climbed in Europe and Asia alongside US equity futures as America and China signalled progress on their phase-one trade deal. Treasuries edged lower with the dollar.
S&P 500 futures advanced and shares rose throughout most of Asia as the two countries reaffirmed their commitment to a deal despite disagreement over issues such as tech security and Hong Kong. European stocks tracked the move upwards, with all 19 industry groups in the green.
Oil was steady as traders eyed Tropical Storm Laura, which is expected to strengthen into a hurricane before making landfall later this week. US gasoline futures rise to the highest since before the pandemic on concern over possible fuel shortages.
In addition to geopolitics, investors are focused on vaccine progress as global economies reopen amid fresh outbreaks of the virus. Moderna Inc. said it’s near a deal to supply at least 80 million vaccine doses to the
European Union.
“A steady flow of progress with Covid-19 treatments/vaccines is delivering the latest boost to risk appetite,” Edward Moya, senior market analyst at OANDA, said in a note. He cautioned that “market breadth however does not support the surge to record high territory for US indexes.”
Traders are also awaiting Federal Reserve Chair Jerome Powell’s scheduled speech on Thursday about the Fed’s long-awaited monetary policy framework review, which has focused on a new inflation strategy.
Elsewhere, gold traded below $1,950 an ounce. Meanwhile, the Bank of Korea sets its monetary policy and will hold a briefing on Thursday.
Futures on the S&P 500 Index gained 0.6% as of 8:12 am London time and the Stoxx Europe 600 Index advanced 0.9%.
While the MSCI Asia Pacific Index increased 0.4%, the MSCI Emerging Market Index climbed 0.2%.
The Bloomberg Dollar Spot Index declined 0.2% and the euro advanced 0.2% to $1.1817.
While the British pound jumped 0.3% to $1.3108, the onshore yuan strengthened 0.1% to 6.912 per dollar. The Japanese yen weakened 0.1% to 106.10 per dollar.
The yield on 10-year Treasuries jumped one basis point to 0.67% and the yield on two-year Treasuries increased one basis point to 0.16%. As Germany’s 10-year yield advanced one basis point to -0.48%, Britain’s 10-year yield gained one basis point to 0.22%. Japan’s 10-year yield gained less than one basis point to 0.031%.
While West Texas Intermediate crude was unchanged at $42.62 a barrel, Brent crude gained 0.4% to $45.31 a barrel and gold strengthened 0.3% to $1,933.75 an ounce.