European stocks, futures rise on stimulus hope; bonds fall

Bloomberg

Stocks in Europe advanced with US futures amid fresh optimism about progress on stimulus talks in Washington. Treasuries dipped.
In Europe, banks and insurers led gains while health care and energy firms lagged. Julius Baer posted one of the biggest jumps after third-quarter inflows accelerated at the Swiss wealth manager.
S&P 500 Index futures climbed after the gauge closed higher for a third week. Speaker of the House Nancy Pelosi set a Tuesday deadline for more progress with the White House on a fiscal deal after lengthy discussions over the weekend with Treasury Secretary Steven Mnuchin.
The pound strengthened after a report that officials were prepared to water down controversial Brexit legislation in a move that could revive failing talks with the European Union.
While Pelosi said a pre-election deal remains possible, her team sent conflicting signals after setting a 48-hour deadline for progress on Saturday night. President Donald Trump renewed his offer to go beyond the dollar amounts now on the table.
Pelosi and Mnuchin spoke at length about efforts to finalize a stimulus package to help the US weather the effects of the coronavirus, especially as signs emerge of rising economic strain for millions of Americans and an acceleration in infections.
“It seems that the market is optimistic that indeed stimulus will follow, whether that is tax cuts under a Trump presidency or spending under a Biden presidency,” Ben Emons, Medley Global Advisors managing director, said on Bloomberg TV.
The US had a fifth consecutive day of infections over 50,000. In Europe, Italy’s cases swelled to a daily record as
the government prepares new containment measures.
Elsewhere, the yuan pared gains and Chinese stocks slipped after the country’s GDP data missed expectations, though the move was muted as retail sales and industrial production beat. Oil fluctuated ahead of an Opec + meeting.
Futures on the S&P 500 Index rise 0.8% as of 9:24 am London time and the Stoxx Europe 600 Index increased 0.5%.
While the MSCI Asia Pacific Index rise 0.7%, the MSCI Emerging Market Index rise as much as 0.3%.
While the Bloomberg Dollar Spot Index falls 0.1% the euro climbed 0.1% to $1.173, the British pound climbed 0.6% to $1.299.
The onshore yuan was little changed at 6.697 per dollar and the Japanese yen was little changed at 105.38 per dollar.
While the yield on 10-year Treasuries climbed two basis points to 0.77%, the yield on two-year Treasuries climbed one basis point to 0.15%.
Germany’s 10-year yield dipped less than one basis point to -0.62% and Japan’s 10-year yield jumped less than one basis point to 0.026%. Britain’s 10-year yield climbed less than one basis point to 0.183%.
While West Texas Intermediate crude fell 0.3% to $40.74 a barrel, Brent crude dipped 0.4% to $42.75 a barrel and gold strengthened 0.6% to $1,910.47 an ounce.