U.S. Futures Rise With Europe Stocks; Metals Climb

U.S. equity futures and European stocks advanced, following a rally that began in China after the country’s central bank pumped cash into the financial system, signaling that it wants to ease monetary policy.

Commodity and technology shares supported the Stoxx Europe 600 Index amid light trading volumes. Covid-19 vaccine contender CureVac continued Friday’s rally, surging more than 50% in U.S. pre-market trading. Gold, copper and nickel advanced, while crude oil retreated. The dollar weakened against most of its peers and Treasuries were steady.

In Asia, the Shanghai Composite closed up 2.3% after the People’s Bank of China supplied extra liquidity to commercial banks. The net injection indicates “a more accommodative stance on keeping liquidity levels ample” so that commercial banks can continue to support bond issuance and to stabilize credit growth, said Liu Peiqian, a China economist at Natwest Group Plc. in Singapore.

In the backdrop, tensions are continuing to mount between the U.S. and China. Senior officials from Washington and Beijing late last week postponed trade talks that had been set for this past weekend to discuss the status of the “phase one” trade deal signed early in the year.

Minutes due to be released on Wednesday from the Federal Reserve’s most recent policy meeting may yield clues about whether officials plan to introduce new language in September.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index gained 0.2% as of 6:55 a.m. New York time.The Stoxx Europe 600 Index increased 0.2%.The MSCI Asia Pacific Index was little changed.The MSCI Emerging Market Index rose 0.4%.

Currencies

The Bloomberg Dollar Spot Index sank 0.2%.The euro climbed 0.1% to $1.1855.The British pound gained 0.2% to $1.3107.The Japanese yen strengthened 0.3% to 106.32 per dollar.The offshore yuan strengthened 0.1% to 6.9364 per dollar.

Bonds

The yield on 10-year Treasuries sank two basis points to 0.69%.The yield on two-year Treasuries climbed less than one basis point to 0.15%.Germany’s 10-year yield declined one basis point to -0.43%.Britain’s 10-year yield dipped one basis point to 0.238%.Japan’s 10-year yield fell one basis point to 0.012%.

Commodities

West Texas Intermediate crude declined 0.6% to $41.99 a barrel.Brent crude dipped 0.6% to $44.70 a barrel.Gold strengthened 0.5% to $1,954.55 an ounce.

U.S. Futures Rise With Europe Stocks; Metals Climb, Bloomberg, Aug 17