Stocks rise with US equity futures as bonds decline

Bloomberg

US equity-index futures advanced alongside European and Asian shares as investors awaited fresh developments on foreign trade and this week’s slew of results from major companies. Bonds dropped.
Contracts on the S&P 500 Index rose, pointing to a firm open that would keep the American benchmark within sight of a fresh all-time high. Boeing fell in the pre-market amid pessimism over the 737 Max crisis. In Europe, gains for mining and banking shares helped drive the Stoxx Europe 600 Index higher, after equities in Asia gained late in the session. The pound fluctuated close to its strongest level since May as the UK Parliament prepared to consider Prime Minister Boris Johnson’s Brexit agreement.
The dollar continued weakening against its major peers, adding to losses after its worst week since June. Sovereign bonds declined, led by Italian and British securities.
With industry heavyweights McDonald’s, Procter & Gamble and Amazon.com all scheduled to deliver earnings this week, investors will get numerous chances to see how corporations are withstanding the effects of trade tension, slowing growth and Brexit.
China’s Vice Premier Liu He said there had been “substantial progress” with the US to lay the foundation for an initial accord on trade.
“It would be significant if they can get a phase one deal signed before Thanksgiving — the probability of that is probably a little bit over 60% right now,” Brett Ewing, chief
market strategist at First Franklin Financial Services, told Bloomberg TV. “This is a very important issue, and I think it could remove a lot of uncertainty.”
In the UK, Johnson is making a fresh bid to deliver on his promise to take Britain out of the European Union on October 31 by putting his exit deal to a vote in the House of Commons. His attempt was derailed by MPs.
Canada votes in a national election.
Earnings season is in full swing with companies reporting including: Amazon.com, Microsoft, Daimler, Kia Motors, McDonald’s, Procter & Gamble, Caterpillar and UBS.
Thursday brings monetary policy decisions from the European Central Bank and Bank Indonesia.
US factory orders for business equipment will provide a look into the strength of capital investment in September. The figures will show to what extent the latest tranche of tariffs on China and others is impacting investment decisions.
Futures on the S&P 500 Index increased 0.2% in New York. The Stoxx Europe 600 Index rose 0.4%. Germany’s DAX Index climbed 0.7%. Sweden’s OMX Stockholm 30 Index jumped 0.9%. The MSCI Asia Pacific Index gained 0.3%.
The Bloomberg Dollar Spot Index fell 0.1%. The British pound was little changed at $1.2983. The euro was little changed at $1.1168. The South Korean Won jumped 0.8% to 1,172.06 per dollar. The Japanese yen decreased 0.1% to 108.55 per dollar.
The yield on 10-year Treasuries increased one basis point to 1.77%. Britain’s 10-year yield gained four basis points to 0.745%. Italy’s 10-year yield climbed six basis points to 0.988%. Australia’s 10-year yield rose five basis points to 1.1515%.
West Texas Intermediate crude decreased 0.8% to $53.35 a barrel. Gold increased 0.1% to $1,492.23 an ounce. Arabica coffee climbed 0.9% to $0.97 a pound. LME nickel declined 0.3% to $16,185 per metric ton.