(Bloomberg) – US index futures jumped with stocks in Europe as China revived hopes of progress in trade talks with America this week despite a number of potential headwinds. Gold glided with treasuries.
The contracts on the S&P 500, Dow Jones and Nasdaq 100 indices extended the gains following a report that China is still open to a partial trade agreement with the United States. In Europe, technology companies and automakers led a broad advance on the Stoxx Europe 600 index. Benchmark stock markets had previously fallen all over Asia, except for those in Shanghai and Mumbai. The dollar depreciated after two days of gains. Crude oil climbed.
The high-level U.S.-China trade talks will resume in Washington on Thursday, although conditions have deteriorated between the two countries. Although a broad deal seems unlikely, China signaled that it is open to a limited deal, provided President Donald Trump does not impose additional tariffs, according to an official. In return, Beijing would offer non-core concessions such as buying agricultural products without relinquishing large stickers, the official said, without offering further details.
The Trump administration on Tuesday banned visa bans for some Chinese officials and blacklisted a number of Chinese technology companies. Bloomberg also reported that the White House is continuing discussions about limiting US state pension investment in China.
The recent flare-up from the US and China overshadowed comments by Federal Reserve Chairman Jerome Powell, who said the central bank would continue the purchase of Treasury securities to avoid the recurrence of recent money market turmoil, while hinting at the possibility of enough an interest rate cut. Minutes from the Fed's latest interest rate meeting are being released tonight, providing further insight into policy makers' thinking ahead of their next meeting at the end of the month.
"Judging from this week's US attack on Chinese firms, trade negotiations are proving less constructive than expected, and intensifying the risk of global growth," Nema Ramkhelawan-Bhana, a FirstRand Bank economist in Johannesburg, told clients. lack of fiscal expansion, states will expose central banks to curb blows by providing additional political accommodation. "
Elsewhere, the yuan climbed, aided by trade optimism and a stronger-than-expected daily benchmark rate. West Texas crude oil rose above $ 53 a barrel, Turkey's lira swung as the country's military began to cross the border into Syria as it had previously warned.
Here are some key events that emerge this week:
Minutes of the last Fed meeting will be released on Wednesday The report on the latest meeting of the European Central Bank will be held on Thursday. Chinese President Xi Jinping will scheduled to meet Indian Prime Minister Narendra Modi on Friday and Saturday for an informal summit. The United States will release a key target for inflation on Thursday.
Here are the key moves in the markets:
The Stoxx Europe 600 index rose 0.4% from 7:08 a.m. in New York time. The S&P 500 index jumped 0.8%. United Kingdom & # 39; s FTSE 100 index rose 0.5%. The MSCI All-Country World Index was little changed. MSCI Emerging Market Index fell 0.3%
Bloomberg Dollar Spot Index fell 0.1%. The euro rose 0.2% to $ 1.0983.
The British Pound climbed 0.1% to $ 1.2227.
The Japanese yen depreciated 0.3% to $ 107.36 per dollar.
The return on 10-year Treasuries gained two basis points to 1.55%. The return on two-year Treasuries increased two basis points to 1.44%. Britain's 10-year return rose three basis points to 0.448%. Germany's 10-year return rose three basis points to -0.57%. Japan's 10-year return climbed less than one basis point to -0.2%.
Intermediate crude oil in West Texas climbed 0.9% to $ 53.10 a barrel. Gold fell 0.2% to $ 1,502.54 an ounce. Iron ore fell 4% to $ 86.10 per tonne.
– With help from Cormac Mullen and Adam Haigh.
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