(Bloomberg) -- European stocks climbed and U.S. equity futures pointed to a stronger open as the world’s two largest economies scheduled fresh trade negotiations next week. Asian shares were mixed and the yen slipped after Thursday’s shock surge.
The Stoxx Europe 600 Index advanced, shaking off two days of losses as miners led gains. Concern over China-U.S. trade tensions that have helped whipsaw stocks this week eased as vice ministers from the two countries prepare to hold talks starting Monday. Efforts to end a partial government shutdown in America also helped send S&P 500 Index futures higher on the heels of yesterday’s 2.5 percent plunge, the gauge’s steepest sell-off since Christmas Eve.
The yen, seen as a haven trade, slipped after wild moves on Thursday. Chinese shares rallied, while stocks in Japan were deep in the red as traders returned from an extended New Year’s break. Treasuries dipped, and the dollar was steady.
Optimism for a resolution to the U.S. government shutdown and over trade talks could ease two of the major overhangs that have dogged equities in recent days. Following poor data from China and Europe, the miserable market performance from last month has continued into the new year, with big swings and flights to safety. The talks will be the first face-to-face negotiation between the two countries since President Donald Trump and his counterpart Xi Jinping agreed to a 90-day truce in their trade war last month.
“I wouldn’t be surprised if we get better communication on trade,” said Stefan Hofer, chief investment strategist at LGT Bank. Still, “we have beginning-of-the-year jitters, low levels of liquidity and exaggerated swings, which feed people’s worst fears -- which I simply can’t sign up to at the moment.”
Elsewhere, oil built on recent gains, heading for its biggest weekly advance since June as traders weighed signs that OPEC is following through on production cuts against hints of an economic slowdown.
Here are some events investors may focus on in coming days:
- The U.S. December jobs report is due Friday
- Fed Chair Powell is interviewed with predecessors Janet Yellen and Ben Bernanke at the annual meeting of the American Economic Association Friday. Atlanta Fed President Raphael Bostic joins a panel on long-run macroeconomic performance.
And these are the main moves in markets:
Stocks
- The Stoxx Europe 600 Index rose 1 percent as of 8:10 a.m. London time, the largest advance in a week.
- Futures on the S&P 500 Index surged 1.2 percent, the biggest jump in more than a week.
- The U.K.’s FTSE 100 Index rose 0.9 percent to the highest in more than two weeks on the largest advance in a week.
- Germany’s DAX Index rose 1.2 percent, the biggest advance in a week.
- The MSCI Emerging Market Index rose 0.8 percent, the largest advance in a week.
- The MSCI Asia Pacific Index fell 0.2 percent to the lowest in more than a week.
Currencies
- The Bloomberg Dollar Spot Index decreased 0.1 percent to the lowest in 11 weeks.
- The euro climbed 0.1 percent to $1.1408.
- The British pound gained 0.3 percent to $1.2665.
- The Japanese yen sank 0.3 percent to 107.95 per dollar, the biggest dip in more than a week.
Bonds
- The yield on 10-year Treasuries climbed three basis points to 2.58 percent, the largest surge in more than a week.
- Germany’s 10-year yield jumped two basis points to 0.17 percent, the biggest surge in two weeks.
- Britain’s 10-year yield climbed three basis points to 1.225 percent, the largest surge in more than a week.
- Italy’s 10-year yield declined three basis points to 2.826 percent.
Commodities
- West Texas Intermediate crude climbed 2 percent to $48.04 a barrel, hitting the highest in more than two weeks with its fifth consecutive advance.
- Gold rose 0.1 percent to $1,294.95 an ounce, reaching the highest in almost seven months on its seventh consecutive advance.
