US stock-index futures climbed with equities in Asia as traders weighed a series of fresh stimulus moves expected from the world’s central banks. Shares fluctuated in Europe, where bonds slipped alongside Treasuries.
Contracts on the three main US stock gauges advanced after Federal Reserve Chairman Jerome Powell gave his last speech before the next policy meeting and cemented views for another interest-rate reduction. Earlier in Asia, Japanese stocks led increases in the region. Chinese authorities took several steps to ease financing conditions in the past few days.
The Stoxx Europe 600 Index swung between modest losses and gains.
Euro-area bonds fell as investors showed less conviction that the European Central Bank’s policy meeting on Thursday will result in bold steps for more monetary stimulus, and after German exports showed a surprise gain. The dollar slipped versus most major currencies. The pound climbed after the UK economy grew surprisingly fast in July, holding gains even as a spokesman for Prime Minister Boris Johnson announced Parliament will be suspended at the end of Monday’s business.
Central banks strode back into the spotlight as protectionist moves by the world’s two biggest economies cast shadows across the global growth outlook. More high-level Sino-US trade talks are not expected until next month. Traders were kept somewhat on edge with data over the weekend showing China’s exports unexpectedly contracted in August, and last week’s US employment report weaker than many forecast.
“There has been a tremendous rally in bonds and the central banks are the key determinant of what’s going to happen with the rates market,” Frances Hudson, global thematic strategist for multi-asset investing at Aberdeen Standard Investments, told Bloomberg TV. “With equities there is still an element of self-determination.”
Elsewhere, oil advanced after Saudi Arabia’s new energy minister signalled that OPEC and its allies will continue with production cuts. Emerging market shares climbed for the four straight session, an MSCI benchmark on track for the highest close in five weeks.
The UK Parliament may be suspended as soon as Monday, and a bill blocking a no-deal Brexit could become law.
OPEC’s monthly oil market report, which includes demand forecasts and production estimates, is due on Wednesday.
The ECB policy meeting on Thursday is expected to see a cut to interest rates and a review of all options, including QE. Policy makers will also publish forecasts for growth and inflation. ECB President Mario Draghi will hold a press conference.
Futures on the S&P 500 Index climbed 0.3 percent in New York. The Stoxx Europe 600 Index was little changed. The UK’s FTSE 100 Index sank 0.5 percent. The MSCI Emerging Market Index rose 0.2 percent. The MSCI Asia Pacific Index increased 0.4 percent.
The Bloomberg Dollar Spot Index fell 0.1 percent. The euro was little changed at $1.1026. The British pound jumped 0.6 percent. The Japanese yen decreased 0.1 percent. The MSCI Emerging Markets Currency Index increased 0.1 percent.
The yield on 10-year Treasuries gained three basis points to 1.59 percent. Britain’s 10-year yield climbed six basis points to 0.561 percent. Germany’s 10-year yield rose four basis points to -0.60 percent.
West Texas Intermediate crude climbed 0.5 percent.