US futures edge higher ahead of holiday break

Bloomberg

Stocks in Europe edged higher on Monday along with US equity-index futures, with volumes subdued as investors count down to the holiday break. Ten-year Treasuries and the dollar were steady.
Healthcare stocks led the modest advance on the Stoxx Europe 600 index after Friday’s record-high close. Contracts on the S&P 500 climbed after the underlying index logged its biggest weekly gain since September. Chinese shares dropped after a state-backed fund said it would pare its stakes in some tech companies. Equities had modest losses in Tokyo, and were little changed in Hong Kong and Seoul.
Major asset classes are collectively on track for the best returns in a decade in 2019 after central banks around the world eased monetary policy. Trade tensions also eased ahead of the year end, calming investors’ nerves. China cut import tariffs on a wide range of goods including food, consumer items and smart-phone parts, continuing Beijing’s drive to lower trade barriers and spur domestic demand. The signing of the first-phase of the US-China trade deal is set for January.
“There is justification to say that the fundamentals are turning, but we haven’t seen confirmation in prices or data yet,” Kyle Rodda, an analyst at IG Markets Ltd, said on Bloomberg TV. “The risk is skewed to the upside, but I still think it’s a tentative picture at the moment.”
The pound is straddling $1.30 after seeing its worst week in more than two years. It remains on the back foot after UK Prime Minister Boris Johnson renewed hard-Brexit fears with an accelerated schedule for signing a trade deal with the European Union.
Elsewhere, oil declined as Kuwait signaled a deal with Saudi Arabia to renew crude output along their border.
The Stoxx Europe 600 Index increased 0.1% as of 6:23 am New York time. Futures on the S&P 500 Index gained 0.1%. The UK‘s FTSE 100 Index advanced 0.5%. The MSCI World Index was little changed.The MSCI Emerging Market Index climbed 0.1%.
The Bloomberg Dollar Spot Index was little changed. The euro was little changed at $1.1079. The British pound declined 0.2% to $1.2978. The Japanese yen was little changed at 109.41 per dollar.
The yield on 10-year Treasuries dipped less than one basis point to 1.91%. The yield on two-year Treasuries advanced one basis point to 1.64%. Germany’s 10-year yield was unchanged at -0.25%. Britain’s 10-year yield sank two basis points to 0.767%. Japan’s 10-year yield climbed less than one basis point to 0.016%.
West Texas Intermediate crude fell 0.2% to $60.34 a barre. Gold strengthened 0.4% to $1,483.79 an ounce.