Stocks will show the strongest quarter; pound grows

Stocks climbed globally on Friday to round out a strong quarter while Treasuries declined as investors gauged the growth outlook and hopes for a China trade deal. The pound jumped. Futures on the S&P 500, Nasdaq and Dow Jones all advanced, with U.S.-China trade talks set to continue. Miners and retailers led the way up in the Stoxx Europe 600 Index, and a gauge of global stocks was headed for its best quarter since 2012. Equities rose across Asia, with Chinese shares posting the biggest gains. European sovereign bonds were mixed and the euro weakened even as German unemployment fell to a fresh record low. The pound reversed an earlier drop on speculation that some Labour lawmakers could back the Prime Minister’s Brexit plan in a vote later Friday.

Whether the rebound in stocks can spill over into the second quarter may depend on the outcome of trade talks between Chinese and American negotiators, who are said to be working line-by-line through the text of an agreement. Meanwhile, nerves remain frayed after the inversion of a key part of the U.S. yield curve, with grumblings over Brexit delays in the background.

The Stoxx Europe 600 Index increased 0.5 percent as of 7:27 a.m. New York time to the highest in more than a week. Futures on the S&P 500 Index climbed 0.4 percent to the highest in more than a week. The MSCI Asia Pacific Index gained 0.6 percent. The MSCI Emerging Market Index climbed 0.9 percent to the highest in a week on the biggest increase in more than a week.