Stocks in Europe gained along with U.S. equity futures on what’s set to be a busy day, with a European Central Bank rates decision and American inflation data among events on investors’ radar. Treasuries rose and the dollar was steady.
The Stoxx Europe 600 index advanced for the first time in three days, led by miners and oil companies, while futures on the S&P 500 edged higher as investors seemed to look past the Trump administration’s threat of new tariffs on European goods and the IMF’s gloomy growth forecasts. Network International shares surged in London after the payments processor raised 1.1 billion pounds ($1.4 billion) in Europe’s biggest IPO this year. Shares fell in Japan and Hong Hong Kong earlier, while Chinese and Korean equities rose. Ten-year Treasury yields fell below 2.5 percent.
Sentiment remains fragile, with the IMF’s somber report on global growth highlighting fears about the outlook for the world economy that have simmered for months. The U.S. appeared to open another front in its trade dispute with the European Union, while negotiations with China remain unsettled. Federal Reserve minutes, American inflation data and the ECB rates decision Wednesday could add to anxieties or help provide calm, with investors also focusing on the first-quarter earnings season getting under way this week.
“It’s quite a tricky environment because clearly the economy isn’t in great shape,” Patrik Schowitz, global multi-asset strategist at JPMorgan Asset Management, told Bloomberg TV in Hong Kong. “Central banks going into easing mode, the Fed pivot — that would not be happening if the economy was firing on all cylinders. At the same time, recession risks are overdone.”
Elsewhere, Israeli stocks and the shekel climbed as Benjamin Netanyahu looks set for a fifth term as prime minister after a bruising election campaign. Turkey’s lira strengthened as the government announced plans to bolster banks. Oil futures gained as speculation that supplies will tighten outweighed Russian caution on more output cuts. China’s benchmark yield rose to the highest this year. Emerging-market stocks climbed for a 10th day, extending their longest run since January 2018./bloomberg