European shares higher in thin trading

On Monday European shares edged higher in choppy, thin trading and U.S. equity futures fluctuated following a mixed session in Asia as China signaled it won’t flinch in a trade war. The pound fell after a key U.K. minister predicted a messy split from Europe.

Banks were among the biggest losers in the Stoxx Europe 600 Index after HSBC’s earnings disappointed, while carmakers climbed. Volume on the main index was more than 20 percent below the 100-day average for the time of day. Contracts on the S&P, Dow and Nasdaq pointed to an uninspiring open. In Asia, the Shanghai Composite Index extended losses to a fourth day. Oil crept higher and most metals fell. The yield on 10-year Treasuries steadied at 2.95 percent.

Rhetoric in the trade war ramped up again this weekend, with U.S. President Donald Trump saying he has the upper hand, and Beijing responding through state media that it is ready to endure the economic fallout. The Asian country on Friday stepped in to try to cushion the yuan after a record string of weekly losses saw the currency closing in on the milestone of 7 per dollar.

The Stoxx Europe 600 Index increased 0.1 percent as of 6:19 a.m. New York time. Futures on the S&P 500 Index gained less than 0.05 percent to the highest in more than a week. The MSCI All-Country World Index fell 0.1 percent. The MSCI Emerging Market Index decreased 0.1 percent.

The euro declined less than 0.05 percent to $1.1564, reaching the weakest in almost six weeks on its fifth straight decline. The British pound dipped 0.3 percent to $1.2966, the weakest in 11 months. The Japanese yen fell less than 0.05 percent to 111.29 per dollar.

West Texas Intermediate crude increased 1.4 percent to $69.46 a barrel, the highest in a week. Gold fell 0.2 percent to $1,212.40 an ounce.