U.S. Futures, Europe Stocks Climb With Treasuries: Markets Wrap

• Mixed sentiment seen amid trade noise and political dramas
• European bonds edge higher; gold rises after Wednesday plunge

Here are the main moves in markets:

Stocks

• Futures on the S&P 500 Index increased 0.2% as of 7:19 a.m. New York time.
• The Stoxx Europe 600 Index advanced 0.7%.
• The U.K.’s FTSE 100 Index gained 1%.
• The MSCI Asia Pacific Index gained 0.2%.
• The MSCI Emerging Market Index climbed 0.4%.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• The euro fell 0.1% to $1.0932.
• The British pound declined 0.1% to $1.2346.
• The Japanese yen strengthened 0.1% to 107.62 per dollar.

Bonds

• The yield on 10-year Treasuries fell three basis points to 1.71%.
• Germany’s 10-year yield declined one basis point to -0.58%.
• Britain’s 10-year yield dipped less than one basis point to 0.533%.

Commodities

• Gold gained 0.3% to $1,508.23 an ounce.
• West Texas Intermediate crude dipped 0.1% to $56.44 a barrel.

U.S. equity futures edged higher with Asian stocks on Thursday while European shares jumped as investors awaited the next developments in a week dominated by political dramas and a lack of clarity over trade. In a sign of the mixed sentiment, Treasuries also climbed, continuing a choppy few days.

Contracts for the S&P 500 Index, Nasdaq 100 and Dow Jones Industrial Average all fluctuated before turning modestly higher, pointing to more gains on Wall Street after the underlying gauges rallied on Wednesday. The dollar steadied after jumping the most since March a day earlier, while gold climbed following a plunge in the previous session. The pound pared a drop to trade little changed amid rising acrimony in Parliament as the U.K. limps toward Brexit.

The Stoxx Europe 600 Index extended an advance through the morning despite a flurry of negative news for individual companies. ABN Amro Bank slumped as it disclosed a criminal probe, while Imperial Brands shares slid after the company cut its guidance. Education publisher Pearson plunged after saying earnings would be at the low end of the expected range.

Investors appear divided on the outlook after markets were buffeted by contrasting headlines on trade and escalating political tensions in recent days. President Donald Trump, facing an impeachment inquiry, tried sending an upbeat message when he said a trade agreement with China is getting “closer and closer” and there’s a “good chance” a deal can be reached.

“Risk-taking will really depend on developments in the U.S.-China trade war,” Anna Han, equity strategist at Wells Fargo Securities LLC, told Bloomberg TV. Though in the short term you may see some risk aversion, “on a three-, six-, or 12-month look we think it will be more risk-on as long as we don’t see anything crazy with a derailment on the trade talks.”

Elsewhere, oil fluctuated as traders weighed the implications of a U.S. move to impose penalties on a handful of Chinese tanker firms for carrying Iranian crude. In Asia, equities in Japan, Hong Kong and India helped drag the regional gauge up as shares in China and Australia fell. The New Zealand dollar climbed and traders trimmed bets for more easing after the central bank governor said interest-rate cuts are working.

 

— With assistance by Adam Haigh, and Cormac Mullen