Global shares head for third week of gains
U.S. equity futures rose with Asian and European stocks as shares globally headed for a third weekly gain thanks to easing trade fears and a new round of central bank stimulus. Treasury yields climbed and the dollar slipped.
U.S. equity futures pointed to a firm start on Wall Street, where all eyes will be on the S&P 500 after it closed near a record. The Stoxx Europe 600 rose, led by gains in banks and miners. In Asia, Japan’s Topix rose to its highest since May. Stocks in Hong Kong also climbed, while China and South Korea were closed for a holiday.
The pound headed for the biggest weekly gain since May after the Times reported possible progress in Brexit negotiations related to the contentious Irish backstop. Prime Minister Boris Johnson will meet EU President Jean-Claude Juncker next week. The euro extended a rally and government bonds retreated in the wake of the European Central Bank’s moves to support growth, and as one policy maker said a new easing package was a possible mistake. Ten-year Treasury yields were near the highest in more than a month.
Optimism over a trade deal is growing ahead of expected highlevels talks next month between the world’s two largest economies. The S&P 500 climbed within 0.5% of its all-time high on Thursday after a news broke about an interim trade agreement under consideration by the Trump administration. Soybean futures edged higher following Thursday’s rally, after the Xinhua News Agency said China is encouraging companies to buy certain U.S. farm products and it will exclude those goods from additional tariffs.
Futures on the S&P 500 Index increased 0.4% as of 6:25 a.m. New York time. Germany’s DAX Index gained 0.5%. The MSCI Asia Pacific Index rose 0.7%. The U.K.’s FTSE 100 Index decreased 0.1%.
West Texas Intermediate crude decreased 0.1% to $55.03 a barrel. Gold increased 0.5% to $1,506.97 an ounce.
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.