London: European shares took their cue from a rally in Asia as investors wagered the world’s two-biggest economies have time to iron out trade differences in the wake of the latest tariff salvos. The dollar slipped and yuan advanced as China said it won’t devalue its currency.
Carmakers climbed as data showed European auto registrations soared in August, with the sector among the best performers in the Stoxx Europe 600 Index as it rose for a fourth day. U.S. equity futures pointed to a firm open. The greenback fell against most major peers, while Treasuries edged lower. Gilts dropped and the pound rallied after U.K. inflation unexpectedly accelerated in August. Italian debt declined as the wrangling over the country’s budget continued.
Earlier, shares in Japan, Hong Kong and China climbed. Emerging-market equities advanced for the fifth time in six sessions as their currencies edged higher.
While the threat to global growth remains, investors have had months to take a view on the trade war and stock markets have been signalling a turnaround in sentiment -- a basket of global shares is rising for the seventh time in eight sessions. As the week grinds on Brexit remains a key item on the agenda, with the United Kingdom and European Union appearing to move closer to a deal.
Elsewhere, oil extended gains made after Saudi Arabia expressed comfort with Brent prices rising above $80 a barrel. The yen was steady after the Bank of Japan left its policy unchanged, keeping monetary stimulus in place.
The Stoxx Europe 600 Index gained 0.2 percent as of 9:29 a.m. London time, to the highest in more than two weeks. Futures on the S&P 500 Index dipped less than 0.05 percent. The MSCI All-Country World Index advanced 0.3 percent to the highest in more than two weeks. The MSCI Emerging Market Index climbed 0.8 percent.
The Bloomberg Dollar Spot Index fell 0.2 percent to the lowest in three weeks. The euro climbed 0.3 percent to $1.1707, the strongest in eight weeks. The Japanese yen dipped less than 0.05 percent to 112.38 per dollar, the weakest in two months. The Turkish lira jumped 0.9 percent to 6.3247 per dollar. South Africa’s rand climbed 1.1 percent to 14.7408 per dollar, the strongest in almost three weeks. The MSCI Emerging Markets Currency Index gained 0.2 percent to the highest in more than two weeks.
The yield on 10-year Treasuries advanced one basis point to 3.06 percent, the highest in more than four months. Germany’s 10-year yield advanced one basis point to 0.49 percent, reaching the highest in almost four months on its fifth straight advance. Britain’s 10-year yield climbed two basis points to 1.587 percent, hitting the highest in seven months with its fifth straight advance. The spread of Italy’s 10-year bonds over Germany’s dipped less than one basis point, the narrowest in seven weeks.
The Bloomberg Commodity Index gained 0.3 percent to the highest in a week. West Texas Intermediate crude increased 0.2 percent to $70.01 a barrel, the highest in a week. LME copper climbed 0.5 percent to $6,115.00 per metric ton, the highest in more than three weeks. Gold advanced 0.4 percent to $1,203.31 an ounce, the highest in a week.
This story has been published from a wire agency feed without modifications to the text.