Europe stocks gain as US futures drop
The rebound in stock prices spread to Europe, but markets remained on edge as Asian equities pared their advance while U. S. futures retreated. Treasuries rebounded after Tuesday's slump, gold climbed and crude gave up gains.
The Stoxx Europe 600 Index headed for the first increase in eight days as most sectors on the gauge rose. Earlier in Asia, Japan's benchmarks eked out slim gains at the close after retreating from the session's highs, while Chinese shares dropped. The dollar was flat as commodities rallied.
Markets from Europe to Japan tumbled into oversold territory after the rout of the past week, which was triggered by rising bond yields and the prospects for a return of inflation and subsequent tighter monetary policy.
Amid a slew of calls to "buy the dip," investors will be watching Wednesday's auction of 10-year Treasuries for clues on where markets go from here.
Elsewhere, the Cboe Volatility Index, a gauge of implied volatility for the S&P 500 Index, edged higher after Tuesday's pullback. Oil gave up earlier gains and Bitcoin edged higher, nearing $8,000.
Monetary policy decisions are due this week in Russia, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru and the Philippines. Earnings season continues with reports from Philip Morris, Tesla, Rio Tinto, L'Oreal and Twitter.
New York Fed President William Dudley and Dallas Fed President Robert Kaplan are among policy officials due to speak.
The Stoxx Europe 600 Index climbed 0.7 percent as of 9:55 a.m. London time, the first advance in more than a week and the largest increase in more than a month.
Futures on the S&P 500 Index sank 1 percent. The MSCI Asia Pacific Index climbed 0.1 percent. The U. K.' s FTSE 100 Index increased 0.4 percent, the first advance in more than a week. The MSCI Emerging Market Index advanced 0.1 percent, the first advance in a week.
The Bloomberg Dollar Spot Index climbed 0.1 percent to the highest in more than two weeks. The euro declined 0.2 percent to $1.2352, the weakest in more than two weeks. The British pound dipped 0.1 percent to $1.393, the weakest in almost three weeks. The Japanese yen gained 0.5 percent to 109.04 per dollar, the strongest in more than a week. South Africa's rand climbed 0.1 percent to 11.9075 per dollar. The MSCI Emerging Markets Currency Index jumped 0.4 percent, the first advance in a week.
The yield on 10- year Treasuries dipped four basis points to 2.76 percent. Germany's 10-year yield fell less than one basis point to 0.69 percent, the lowest in more than a week. Britain's 10-year yield decreased one basis point to 1.511 percent, the lowest in a week.
West Texas Intermediate crude fell 0.3 percent to $63.21 a barrel, the lowest in more than four weeks. Gold climbed 0.4 percent to $1,329.27 an ounce.