European stocks hit record as US futures climb on trade deal

Bloomberg

European stocks and US equity futures started the week on the front foot amid hopes a partial trade deal between America and China eases a key risk for investors heading into year-end. Treasuries edged lower.
The Stoxx Europe 600 became the latest major equity gauge to hit a new all-time high as it jumped for a fourth day, led by gains in miners and financial shares. Contracts on the main US benchmarks all rose in the wake of Friday’s agreement that will see Washington reduce tariffs and Beijing increase purchases of American farm goods, even though many details are still to be ironed out.
Shares were mixed in Asia, while the yuan strengthened offshore after Chinese data showed industrial output and retail sales both exceeded expectations. The pound trimmed an advance after data showed UK factories posted the weakest performance in more than seven years.
The initial outcome of the US-China announcements was avoiding a scheduled tariff hike for December 15, an event that had loomed large for markets but which has now come and gone without incident. It remains unclear how China will follow through on pledges to boost American agricultural imports, and how quickly the US promise to roll back half of a September tariff hike will
happen.
China’s threat of retaliation against Germany if it excludes Huawei Technologies Co as a supplier of 5G wireless equipment shows tensions remain high elsewhere.
The trade accord will “de-escalate things for now,” Peter Schaffrik, global macro strategist at RBC Capital Markets, said on Bloomberg TV. “But that doesn’t mean that all the frictions are going away.”
Futures on the S&P 500 Index gained 0.3% as of 10:23 a.m. London time. The Stoxx Europe 600 Index rose 1%. The MSCI Asia Pacific Index dipped 0.1%. The MSCI Emerging Market Index was little changed.
The Bloomberg Dollar Spot Index fell 0.1%. The euro jumped 0.2% to $1.1139. The British pound gained 0.1% to $1.3344. The onshore yuan was little changed at 7.004 per dollar. The Japanese yen was little changed at 109.42 per dollar.
The yield on 10-year Treasuries gained two basis points to 1.84%. The yield on two-year Treasuries rose two basis points to 1.62%. Germany’s 10-year yield dipped one basis point to -0.30%. Britain’s 10-year yield declined three basis points to 0.757%. Japan’s 10-year yield climbed one basis point to -0.011%.
West Texas Intermediate crude was little changed at $60.05 a barrel. Iron ore declined 0.2% to $92.72 per metric ton. Gold increased 0.1% to $1,477.84 an ounce.