Telecommunications and Construction Shares push Europe higher

On Monday U.S. equity futures edged lower and shares in Europe and Asia rose as investors digested signs that AmericaChina trade tensions are set to persist. Treasuries declined, the dollar drifted and the pound advanced.

Telecommunications and construction shares pushed the the Stoxx Europe 600 Index higher, along with stocks in Italy, where Deputy Premier Luigi Di Maio said the government is ready for dialog with the European Commission over the country’s budget. Equities posted modest gains in Tokyo, Hong Kong, Shanghai and Taiwan. They fell in Australia and New Zealand, where the Aussie and kiwi currencies also dropped after U.S. Vice President Mike Pence attacked China at a weekend summit.

The pound strengthened as Theresa May prepared to appeal to business leaders to help deliver her Brexit deal as the premier fights almost insurmountable Parliamentary opposition. European bonds were mixed, with core notes slipping and peripherals rising led by Italy.

Investors are reassessing markets after several weeks of volatility amid enduring concern over trade conflicts and rising U.S. interest rates that push up financing costs and threaten world growth. Tension between Chinese President Xi Jinping and the U.S. vice president quashed optimism that relations would improve at Group-of-20 meetings starting next week as the AsiaPacific Economic Cooperation failed to agree on a joint statement for the first time in its history.

The Stoxx Europe 600 Index gained 0.2 percent as of 9:52 a.m. London time. Futures on the S&P 500 Index decreased 0.1 percent. Italy’s FTSE MIB Index jumped 0.8 percent. The U.K.’s FTSE 100 Index increased 0.3 percent, the biggest climb in more than a week. The MSCI All-Country World Index increased 0.2 percent to the highest in more than a week.

West Texas Intermediate crude gained 0.6 percent to $56.81 a barrel, the highest in a week. Natural gas rose 6.3 percent to $4.54 per mmbtu. Gold decreased 0.3 percent to $1,219.55 an ounce, the first retreat in a week.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.