(Bloomberg) — U.S. equity futures climbed alongside stocks in Europe as investors clung to their cautious optimism on prospects for easier monetary policy. Euro-zone bonds fell.
Contracts on all three of the main U.S. stock gauges rose after the S&P 500 Index closed Thursday at a record high. Gains in auto and chemical shares on the Stoxx Europe 600 pushed the benchmark toward its first increase this week. Shares dipped in Australia and Japan and posted modest gains in Hong Kong, China and South Korea.
Government bonds extended their decline in Europe, heading for their worst week since at least October, after industrial output data for the euro region beat expectations. The single currency was steady. Treasury 10-year yields held near a one-month high.
The rally in risk assets is continuing to benefit from Federal Reserve Chairman Jerome Powell’s dovish comments this week, even after strong U.S. inflation data on Thursday offered a potential complication to policy makers when they set rates at the end of the month.
Meanwhile, weak data from both Singapore and China sent another warning shot to the world economy on the impact of trade tensions. The reports came after President Donald Trump complained that China hasn’t increased its purchases of American farm products, a promise he said he had secured at his G-20 meeting with the country’s president Xi Jinping last month.
Elsewhere, WTI oil headed for its sixth advance in seven sessions as operators in the Gulf of Mexico braced for Tropical Storm Barry.
Here are some key events coming up:
U.S. producer prices are due on Friday.
Here are the main moves in markets:
Futures on the S&P 500 Index advanced 0.2% as of 11:15 a.m. London time to the highest on record.The Stoxx Europe 600 Index gained 0.2%, the first increase in more than a week.The U.K.’s FTSE 100 Index climbed 0.3%, the first rise in more than a week.The MSCI Asia Pacific Index dipped 0.2%.The MSCI Emerging Market Index sank 0.3%.
The Bloomberg Dollar Spot Index dipped less than 0.05% to the lowest in more than a week.The British pound climbed 0.1% to $1.2535, the strongest in more than a week.The Japanese yen advanced 0.1% to 108.41 per dollar, the strongest in more than a week.The euro gained less than 0.05% to $1.1259, the strongest in more than a week.
The yield on 10-year Treasuries dipped less than one basis point to 2.14%.Germany’s 10-year yield advanced three basis points to -0.20%, the highest in six weeks.Britain’s 10-year yield gained one basis point to 0.843%, the highest in three weeks.
Gold increased 0.2% to $1,406.92 an ounce.West Texas Intermediate crude gained 0.5% to $60.48 a barrel, the highest in more than seven weeks.
–With assistance from Adam Haigh.
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