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Bloomberg
US equity futures advanced with European stocks after a news report that China and America were moving closer to a trade deal, despite heated rhetoric. Treasuries and gold slipped.
Contracts on three main American index futures rebounded after Bloomberg reported US negotiators expect a phase-one deal with China to be completed before tariffs are set to rise on December 15, despite tensions over Hong Kong and Xinjiang. Miners and financial-services shares led the rise on the Stoxx Europe 600 gauge. Earlier, equity benchmarks closed lower across Asia, with Australia and Hong Kong bearing the brunt of the declines.
The dollar held steady against its major peers. The euro edged lower after a manufacturing report showed that the single-currency economy is barely expanding. The British pound climbed to an almost seven-month high as polls showed the Conservatives have increased their lead before the election. Crude oil futures climbed.
Sentiment for risk assets is improving when investors turned away from stocks after President Donald Trump said he had no deadline to sign an agreement with China, and the House voted to sanction Chinese officials for alleged human-rights abuses in the Xinjiang region. While Beijing had threatened to retaliate against that legislation, it’s unlikely to impact the talks, according to the Bloomberg report on Wednesday, which cited an unidentified person familiar with Beijing’s thinking.
The Stoxx Europe 600 Index surged 1.1% as of 7:14 am New York time on Wednesday. Futures on the S&P 500 Index jumped 0.5%. The U.K.’s FTSE 100 Index increased 0.2%. The MSCI World Index of developed countries rose 0.1%. The MSCI Emerging Market Index decreased 0.1%.
The Bloomberg Dollar Spot Index dipped 0.1%. The euro dipped 0.1% to $1.1074.The British pound climbed 0.6% to $1.3068. The Japanese yen was little changed at 108.65 per
dollar.
The yield on 10-year Treasuries gained two basis points to 1.74%. The yield on two-year Treasuries rose one basis point to 1.55%. Germany’s 10-year yield rose less than one basis point to -0.34%. Britain’s 10-year yield jumped four basis points to 0.708%. Japan’s 10-year yield dipped two basis points to -0.038%.
West Texas Intermediate crude surged 1.6% to $56.99 a barrel. Gold was little changed at $1,477.07 an ounce.