Europe stocks, commodities rise as trade optimism builds

Bloomberg

Stocks in Europe edged higher after a rally in Asia drove the region’s shares to their highest level since October amid optimism over China’s economy and trade talks. Commodities from oil to copper jumped.
The Stoxx Europe 600 edged up following a choppy morning as gains by telecommunications companies offset declines in carmakers, after President Donald Trump received a report that may be a preliminary step to raising tariffs on auto imports. US equity-index futures were little changed following a positive session in Asia, where China’s credit growth helped ease worries of a slowdown in the biggest regional economy and optimism for a trade detente with America boosted risk appetite ahead of talks in Washington this week.
The yen slipped with the dollar, while the euro strengthened despite dovish comments from a European Central Bank governing council member. A gauge of commodities climbed the most since December, with WTI oil futures rising above $56 a barrel. US exchanges are closed for Presidents’ Day.
Trade continues to dominate global markets as the economic superpowers race to reach a deal that would avert a tariff increase on Chinese goods by March 1, a deadline President Trump has said he may extend. Over the weekend, Trump said the talks have been “very productive.” President Xi Jinping also sounded upbeat, reportedly saying the latest round of meetings “achieved important progress in another step.”
Investors may also get further guidance on US monetary policy this week. Minutes from the Federal Reserve’s most recent meeting will likely show how much conviction there was among policy makers to suspend their interest-rate hiking campaign.
Elsewhere, the pound strengthened after seven members of the UK Parliament said they’ll stand as independents after quitting the main opposition Labour Party over issues including Brexit. Emerging-market assets advanced.
The Federal Reserve will on Wednesday publish minutes from its recent meeting. Bank of Canada Governor Stephen Poloz speaks on Thursday; ECB President Mario Draghi speaks on Friday, the same day Reserve Bank of Australia Governor Philip Lowe gives parliamentary testimony. Australia’s central bank releases meeting minutes on Tuesday. Indonesia rate decision is also due on Thursday.

STOCKS
The Stoxx Europe 600 Index gained 0.2 percent as of 1:56 p.m. London time.
The UK’s FTSE 100 Index advanced less than 0.05 percent. Germany’s DAX Index dipped 0.1 percent.
The MSCI Emerging Market Index jumped 0.6 percent. The MSCI Asia Pacific Index gained 1.2 percent to the highest in 19 weeks on the biggest rise in more than two weeks.
CURRENCIES
The Bloomberg Dollar Spot Index fell 0.1 percent.
The euro gained 0.2 percent to $1.1323. The British pound increased 0.2 percent to $1.2917, the strongest in more than a week. The Japanese yen decreased 0.1 percent to 110.58 per dollar.

BONDS
Germany’s 10-year yield increased one basis point to 0.11 percent. Britain’s 10-year yield climbed one basis point to 1.169 percent. Italy’s 10-year yield declined three basis points to 2.765 percent, the lowest in two weeks.

COMMODITIES
West Texas Intermediate crude climbed 1 percent to $56.14 a barrel, hitting the highest in three months with its fifth consecutive advance. Gold advanced 0.3 percent to $1,326.78 an ounce, the highest in 10 months.