U.S. Futures Climb With Stocks on Trade Optimism

U.S. futures climbed with global stocks as America and China signaled progress on their phase-one trade deal. Treasuries slipped with the dollar. S&P 500 contracts advanced and shares rose throughout most of Asia as the two countries reaffirmed their commitment to a deal despite disagreement over issues such as tech security and Hong Kong. The Stoxx Europe 600 Index advanced for a second day after figures showed German companies turning slightly more optimistic on the economic recovery.

Oil edged higher as traders eyed Tropical Storm Laura, which is expected to strengthen into a hurricane before making landfall later this week. U.S. gasoline futures rose to the highest level since March on concern over possible fuel shortages. In addition to geopolitics and business confidence, investors are focused on vaccine progress as global economies reopen amid fresh outbreaks of the virus. Moderna Inc. said it’s near a deal to supply at least 80 million vaccine doses to the European Union.

Traders are also awaiting Federal Reserve Chair Jerome Powell’s scheduled speech on Thursday about the Fed’s long-awaited monetary policy framework review, which has focused on a new inflation strategy. Elsewhere, gold traded below $1,950 an ounce.

Stocks

Futures on the S&P 500 Index gained 0.4% as of 8:20 a.m. New York time.The Stoxx Europe 600 Index advanced 0.6%.The MSCI Asia Pacific Index increased 0.3%.The MSCI Emerging Market Index climbed 0.2%.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1%.The euro gained 0.2% to $1.1809.The British pound jumped 0.5% to $1.3129.The onshore yuan strengthened 0.1% to 6.914 per dollar.The Japanese yen weakened 0.4% to 106.41 per dollar.

Bonds

The yield on 10-year Treasuries increased three basis points to 0.68%.The yield on two-year Treasuries jumped one basis point to 0.16%.Germany’s 10-year yield jumped five basis points to -0.44%.Britain’s 10-year yield increased three basis points to 0.241%.Japan’s 10-year yield advanced one basis point to 0.035%.

Commodities

West Texas Intermediate crude increased 0.5% to $42.82 a barrel.Brent crude gained 1.1% to $45.62 a barrel.Gold weakened 0.3% to $1,923.54 an ounce.

U.S. Futures Climb With Stocks on Trade Optimism: Markets Wrap, Bloomberg, Aug 25