US futures, Europe stocks climb; Treasuries decline

Bloomberg

US equity futures climbed with European stocks after a mixed session in Asia as investors assessed the latest news on trade and awaited more clues on monetary policy. Treasury yields ticked higher after retreating earlier.
Contracts on the three main US equity gauges advanced a day after the S&P 500 Index closed lower as US President Donald Trump showed no urgency to resolve trade friction with China and renewed his call for a “big” Federal Reserve rate cut. The Stoxx Europe 600 index jumped, with automakers leading the advance as Renault and Fiat Chrysler surged after a report that they’re still talking about a potential merger. Japanese and Australian benchmarks fell, while shares rose in Hong Kong and Seoul and were little changed in Shanghai.
Most European bonds declined, though Italian debt rose a second day after Prime Minister Giuseppe Conte resigned. Bunds stayed lower as Germany failed sell the full amount in an auction of 30-year, zero-coupon securities. The yen slipped with the pound and the dollar was steady.
Investors will be watching policy makers and world leaders this week as they convene to consider the weakest global growth since the financial crisis. The Group of Seven leaders, with President Trump among them, will gather in France from the weekend as the European Central Bank mulls interest rate cuts. And while the Fed minutes may provide some clarity on officials’ views, they’re likely to be overshadowed by Chairman Jerome Powell’s address at Jackson Hole in Wyoming in the wake of Trump’s latest attack on the central bank.
“The key thing is the Jackson Hole speech by Fed Chair Powell,” Tuuli McCully, head of Asia-Pacific Economics at Scotiabank, told Bloomberg TV.
“It will be interesting to hear if he sticks to the mid-cycle adjustment tone or if he will promise more.”
Elsewhere, oil advanced and gold held above $1,500.
Minutes of the Fed’s July meeting will provide details on the discussions leading to the first interest-rate cut in a decade when they are released on Wednesday.
Thursday brings the Bank Indonesia rate decision and press conference with Governor Perry Warjiyo. Flash PMIs are due for the euro area on Thursday.
Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting from Thursday. Fed Chairman Jerome Powell will give remarks on Friday.
Futures on the S&P 500 Index rose 0.7 percent in New York. The Stoxx Europe 600 Index increased 1 percent. The UK’s FTSE 100 Index gained 1 percent. Germany’s DAX Index climbed 1 percent. The MSCI Asia Pacific Index declined 0.3 percent.
The Bloomberg Dollar Spot Index was little changed at. The euro was little changed at $1.1099. The British pound declined 0.4 percent to $1.2125. The Japanese yen decreased 0.2 percent to 106.46 per dollar.
The yield on 10-year Treasuries increased three basis points to 1.58 percent. The yield on two-year Treasuries climbed two basis points to 1.54 percent. Britain’s 10-year yield rose two basis points to 0.473 percent. Germany’s 10-year yield gained two basis points to -0.67 percent.
West Texas Intermediate crude rose 1 percent to $56.70 a barrel. Gold declined 0.4 percent to $1,501.36 an ounce.