(Bloomberg) — Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.
U.S. equity futures climbed with Asia stocks on Thursday as signs of goodwill in the trade war boosted risk appetite, while European shares fluctuated ahead of a key meeting of the region’s central bank. Treasuries edged higher.
Contracts on the three major U.S. gauges pointed to positive open on Wall Street, while shares climbed in most of Asia after President Donald Trump said he will delay the next tariff increase on China by about two weeks and following reports Beijing is considering American farm imports. Hong Kong equities dipped, weighed down by shares of the city’s exchange following a surprise takeover bid for its London counterpart. The yuan strengthened.
The Stoxx Europe 600 Index erased an earlier gain, the euro strengthened and regional bonds were mixed ahead of the ECB gathering, where most expectations are for policy makers to lower the deposit rate and commence a new round of monetary stimulus. The pound drifted as investors awaited the next twists in the Brexit saga. Oil fluctuated as the International Energy Agency warned OPEC it faces a “daunting” surplus of crude in 2020.
The steps by China and the U.S. to ease tensions ahead of face-to-face talks in Washington in the coming weeks are helping support sentiment as investors await monetary policy decisions from the world’s major central banks. Trump said he was moving back a 5% increase in tariffs on a swathe of Chinese imports by two weeks, while Beijing may allow companies to resume purchases of U.S. agricultural products, according to people familiar with the situation.
“The quantum and nature of the changes mean they are more symbolic than substantial, but were still well received by investors,” said Michael McCarthy, chief market strategist at CMC Markets Plc in Sydney.
In addition to Thursday’s ECB gathering, the Federal Reserve is meeting next week, with some traders paring expectations of accommodation and August’s bullish bond sentiment fading. They’ll be watching another key indicator for the world’s largest economy on Thursday: The core U.S. consumer price index, which excludes food and energy, is expected to show a gain of 2.3% in the 12 months through August — the biggest annual advance in a year.
These are the main moves in markets:
Futures on the S&P 500 Index increased 0.1% as of 6:19 a.m. New York time.The Stoxx Europe 600 Index decreased 0.1%.The Shanghai Composite Index advanced 0.7%.The MSCI Emerging Market Index gained 0.5%.
The Bloomberg Dollar Spot Index fell 0.1%.The euro advanced 0.1% to $1.1023.The British pound was little changed at $1.2332.The onshore yuan jumped 0.4% to 7.086 per dollar.The Japanese yen dipped 0.1% to 107.89 per dollar.
The yield on 10-year Treasuries declined one basis point to 1.73%.The yield on two-year Treasuries climbed less than one basis point to 1.67%.Germany’s 10-year yield dipped one basis point to -0.57%.Britain’s 10-year yield jumped two basis points to 0.652%.Japan’s 10-year yield fell one basis point to -0.212%.
West Texas Intermediate crude dipped 0.6% to $55.41 a barrel.Gold climbed 0.4% to $1,503.10 an ounce.
–With assistance from Sophie Caronello and Adam Haigh.
To contact the reporter on this story: Yakob Peterseil in London at email@example.com
To contact the editor responsible for this story: Samuel Potter at firstname.lastname@example.org
For more articles like this, please visit us at bloomberg.com
©2019 Bloomberg L.P.