Dollar Falls to 2-Year Low; Stocks Pare Advance

The dollar dropped to a two-year low and U.S. futures climbed after Chinese manufacturing data indicated that exports are underpinning a recovery. European stocks pared gains amid a retreat in travel shares.

The euro led the charge against the greenback, hovering just below $1.20. Rolls-Royce Holdings Plc and Trainline Plc led losses in the Europe Stoxx 600 Index. The weaker dollar fueled a broad advance in commodities, with copper climbing past $6,800 a ton in London. Treasuries were little changed.

Here are some key events to watch this week:

ISM manufacturing data is due Tuesday in the U.S.
Australia GDP is due Wednesday.
U.S. jobless claims for the week ended Aug. 29 are due Thursday.
U.S. jobs report Friday is forecast to show payrolls continued to rebound in August from virus lows.
Here are the main market moves:

Stocks
Futures on the S&P 500 Index gained 0.5% as of 9:29 a.m. London time.
The Stoxx Europe 600 Index climbed 0.1%.
The MSCI Asia Pacific Index increased 0.4%.
The MSCI Emerging Market Index gained 0.9%.

Currencies
The Bloomberg Dollar Spot Index sank 0.4%.
The euro gained 0.4% to $1.1981.
The British pound jumped 0.4% to $1.3429.
The Japanese yen strengthened 0.2% to 105.65 per dollar.
The offshore yuan strengthened 0.4% to 6.8233 per dollar.

Bonds
The yield on 10-year Treasuries rose one basis point to 0.72%.
The yield on two-year Treasuries was unchanged at 0.13%.
Germany’s 10-year yield gained one basis point to -0.39%.
Britain’s 10-year yield jumped two basis points to 0.331%.
Japan’s 10-year yield dipped less than one basis point to 0.047%.

Commodities
West Texas Intermediate crude rose 0.7% to $43.10 a barrel.
Brent crude climbed 0.5% to $45.80 a barrel.
Gold strengthened 1.2% to $1,990.44 an ounce.

Dollar Falls to 2-Year Low; Stocks Pare Advance: Markets Wrap, Bloomberg, Sep 01