European stocks mixed

On Thursday U.S. bonds extended a drop, with the 10-year Treasury yield climbing above 2.6 percent for the first time since March to help the dollar hold Wednesday’s gain. The euro strengthened while European stocks were mixed.

European stocks pared an earlier advance but managed to stay in the green even as the euro climbed against most peers, shrugging off ECB attempts to talk it down earlier this week. West Texas oil was flat on signs U.S. crude stockpiles continued to shrink, and base metals advanced following strong Chinese growth data. U.S. equity futures traded little changed in the wake of big gains in the benchmarks on Wednesday.

Treasuries are in retreat amid hopes that U.S. lawmakers will strike a deal to avert a government shutdown before temporary funding runs out on Friday, and as the global growth story lures investors into riskier assets. China’s better-than-expected data only added to the narrative of synchronized expansion, which, alongside upbeat profit expectations, could mean the bull run in stocks going until 2019 or beyond, according to a Bank of America survey of fund managers.

The Stoxx Europe 600 Index increased 0.1 percent as of 10:48 a.m. London time. The MSCI All-Country World Index declined 0.1 percent. The U.K.’s FTSE 100 Index dipped 0.4 percent to the lowest in more than two weeks on the biggest decrease in more than two weeks. Germany’s DAX Index gained 0.4 percent, the largest rise in almost two weeks.

Gold advanced 0.2 percent to $1,329.80 an ounce. West Texas Intermediate crude increased less than 0.05 percent to $64.00 a barrel. LME copper advanced 0.9 percent to $7,096.50 per metric ton.

The yield on 10-year Treasuries increased one basis point to 2.60 percent, the highest in about 10 months. Britain’s 10year yield advanced three basis points to 1.335 percent.

The euro jumped 0.3 percent to $1.2224. The British pound rose 0.1 percent to $1.3845, hitting the strongest in 19 months.