Stocks rise after China’s IP move; Treasuries decline

Bloomberg

Stocks climbed globally along with US equity futures as investors digested China’s decision to tighten intellectual property rules, a move that may boost the chances of a trade deal between the world’s largest economies. Treasuries and the yen both dipped.
All 19 sectors rose on the Stoxx Europe 600 Index and all major markets advanced, from the UK to Italy. Equities climbed across Asia, led by those in Hong Kong, where local elections brought a landslide
victory to pro-democracy candidates. In the latest trade twist, China said over the weekend it will raise penalties on intellectual property violations as it tries to smooth over a sticking point in talks with America. Futures on the three main US stock gauges climbed.
The dollar steadied against its major peers.
Stocks are headed for a third month of gains globally, though bonds and other haven investments remain well-supported. While the S&P 500 Index rose after President Donald Trump said he was “very close” to a trade pact, the yield on 10-year US notes has steadied around 1.78%, down from the three-month intraday high of 1.97% touched in early November.
“The markets are pretty much priced for a deal to go ahead, and that may be the case, but we may see that pushed out to 2020,” Eleanor Creagh, market strategist at Saxo Capital Markets, told Bloomberg TV in Sydney.
“The key sticking point is really going to be the rolling back of tariffs.”
Elsewhere, China was planning a record sale of sovereign bonds in dollars, with a potential $6 billion offering, according to people familiar with the discussions. West Texas-grade oil futures drifted. Bitcoin fell as much as 11% and headed for its ninth weekday session of declines, the longest losing streak in a year.
Federal Reserve Chairman Jerome Powell was expected to speak on Monday at the Greater Providence Chamber of Commerce annual dinner in Providence, Rhode Island. Alibaba starts trading in Hong Kong on Tuesday.
Reserve Bank of Australia Governor Philip Lowe will give a speech on unconventional monetary policy on Tuesday evening in Sydney.
US consumer spending data is due on Wednesday, along with GDP, jobless claims and durable goods. The US celebrates Thanksgiving on Thursday, when equity and bond markets will be shut. The Bank of Korea sets policy on Friday.
The Stoxx Europe 600 Index jumped 0.8% in London. Futures on the S&P 500 Index gained 0.3%. Italy’s FTSE MIB Index jumped 0.8%. Hong Kong’s Hang Seng Index advanced 1.5%.
The Bloomberg Dollar Spot Index was little changed. Sterling climbed 0.4% to 0.8552 per euro. The euro dipped 0.1% to $1.1014. The Japanese yen declined 0.2% to 108.85 per dollar. Bitcoin sank 8.1% to $6,746.
The yield on 10-year Treasuries gained one basis point
to 1.78%. Germany’s 10-year yield increased less than one basis point to -0.36%. Italy’s 10-year yield fell three basis points to 1.151%.