US stock futures rise on hopes of US-North Korea summit

Bloomberg

US equity futures followed Asian shares higher on signals an America-North Korea summit is back on track, but risk appetite waned in Europe as Italy’s political outlook darkened. The region’s stocks and common currency both surrendered gains.
S&P 500 futures advanced, as did South Korean stocks, after President Donald Trump appeared to confirm that his June meeting with Kim Jong Un was back on. National gauges in Europe turned lower, led by Italy’s benchmark, as populist leaders pulled the plug on their attempt to form a government and the country lurched toward fresh elections. The nation’s bonds tumbled. Oil losses deepened after Saudi Arabia and Russia said they are discussing reviving output. Trading was somewhat subdued across markets, however, on what is a holiday in both the US and UK.
It had looked like a positive start to the week for global equities following a tumultuous few days, but investor caution is understandable. It’s difficult to know how sentiment will break when traders in both London and New York return; US negotiations with North Korea have proved unpredictable, and while the failure of populist leaders to form a government in Italy removes a threat to the euro area for now, it raises the prospect they will cement their power in a follow-up ballot.
“We may now be in for an extended period of heightened uncertainty ahead of fresh elections,” said Ray Attrill, head of foreign-exchange strategy at National Australia Bank Ltd. in Sydney. Elsewhere, emerging-market stocks and currencies gained. The lira was the stand out performer, rallying after the central bank took steps to simplify its monetary policy.
The Stoxx Europe 600 Index dipped 0.2 percent as of 12:43 pm London time, to the lowest in almost three weeks. Futures on the S&P 500 Index climbed 0.2 percent. The MSCI Asia Pacific Index advanced 0.1 percent, the largest gain in two weeks. Germany’s DAX Index fell 0.2 percent. The MSCI Emerging Market Index jumped 0.4 percent.
The Bloomberg Dollar Spot Index gained less than 0.05 percent to the highest in more than five months. The euro dipped 0.1 percent to $1.1639, the weakest in almost seven months. The British pound advanced less than 0.05 percent to $1.3314. The Japanese yen climbed less than 0.05 percent to 109.36 per dollar. The Turkish lira gained 3 percent to 4.5772 per dollar, the biggest climb in more than two years.
Germany’s 10-year yield declined four basis points to 0.37 percent, the lowest in more than five months. Italy’s 10-year yield gained 17 basis points to 2.63 percent, the highest in almost four years on the largest rise in 14 months.
West Texas Intermediate crude decreased 1.7 percent to $66.70 a barrel, reaching the lowest in almost six weeks on its fifth consecutive decline.
Gold declined 0.2 percent to $1,299.08 an ounce. Brent crude fell 1.5 percent to $75.31 a barrel, the lowest in almost three weeks.