Europe stocks gain as US fu­tures drop

The Pak Banker - - FRONT PAGE - FRANK­FURT -REUTERS

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.

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