Europe stocks, US futures edge lower as bonds climb

Bloomberg

US equity futures edged down alongside European stocks as investors prepared for a week brimming with potential catalysts, from central bank meetings to the looming America-China tariff deadline. Treasuries and most government bonds advanced.
Contracts on the main US equity gauges all struggled for traction as traders awaited news on whether Washington will go ahead with a planned December 15 tariff hike on Chinese imports. The Stoxx Europe 600 Index fluctuated as more than half the shares on the gauge declined, with falling energy companies offsetting rising miners and retailers. Stock indexes posted modest increases in Tokyo and Seoul, while gains mostly fizzled in Hong Kong and Shanghai.
The pound strengthened as polls showed the UK Conservative Party on course to win a majority in Thursday’s election, which would likely mean Britain leaving the European Union by Jan. 31. Gold and the yen also edged higher.
With the US and China heading into the final stretch of negotiations to ward off an escalation in tariffs, markets will be watching closely for any signs of progress. White House economic adviser Larry Kudlow said the two sides are haggling over the amount of US farm products Beijing is willing to purchase. Data showed China’s exports fell 1.1% in November, with those to the US tumbling 23%, underscoring why the nation may want to resolve the dispute.“There’s no upside risks on the horizon,” Katrina Ell, an economist at Moody’s Analytics, said on Bloomberg TV. “It is weighted to the downside and that big downside risk is coming from the trade war.”
Also in focus for investors this week will be central banks, with policy meetings at the Federal Reserve and the
European Central Bank that may offer clues on whether more monetary easing is in store in 2020.
Elsewhere, oil trimmed a rally spurred by Saudi Arabia promising significant additional production cuts beyond what was agreed with fellow OPEC+ members. Futures on the S&P 500 Index decreased 0.1% as of 6:24 a.m. New York time.
The Stoxx Europe 600 Index dipped 0.1%. The MSCI Asia Pacific Index advanced 0.4%. The MSCI Emerging Market Index gained 0.3%.The Bloomberg Dollar Spot Index dipped 0.1%. The euro advanced 0.1% to $1.1073. The British pound jumped 0.3% to $1.3173. The onshore yuan decreased 0.1% to 7.04 per dollar. The Japanese yen gained 0.1% to 108.48 per dollar.
The yield on 10-year Treasuries fell two basis points to 1.82%. The yield on two-year reasuries decreased less than one basis point to 1.61%. Germany’s 10-year yield fell two basis points to -0.31%. Britain’s 10-year yield sank two basis points to 0.75%. Japan’s 10-year yield increased less than one basis point to -0.002%.
West Texas Intermediate crude fell 0.9% to $58.67 a barrel. Iron ore gained 5.3% to $91.89 per metric ton. Gold climbed 0.2% to $1,463.40
an ounce.