(Bloomberg) -- European stocks and core bonds climbed after mainstream parties held their ground against populists in elections.
The Stoxx Europe 600 Index rose for a second straight session, led by carmakers in the wake of Fiat Chrysler’s proposed merger with France’s Renault. U.S. stock futures drifted as markets closed for the Memorial Day holiday. Emerging-market shares gained.
French and German bonds advanced following the European Union vote, while Italy’s fell as the country was said to face a $4 billion fine over failure to rein in debt. The dollar gained against all major peers after President Donald Trump said the U.S. is “not ready” to make a trade deal with China.
Investors are looking for signs of stability after trade frictions and economic data put global stocks on course for their first monthly decline of 2019. Trump gave investors mixed messages to parse while on a visit to Tokyo, saying the U.S. is making “great progress” in trade negotiations with Japan, while at the same time adding that American tariffs on Chinese goods “could go up very, very substantially, very easily.”
“There was a lot of speculation about an early U.S.-China trade deal,” Paul Donovan, chief economist at UBS Global Wealth Management said in a research note. “The problem now is that while individual deals are helpful, the general uncertainty created by trade taxes is creating economic damage.”
Elsewhere, Brent crude climbed. Bitcoin rose to the highest level in a year.
Here are some key events coming up:
Executives from Facebook, Google, Apple, Amazon, Microsoft and Twitter are scheduled to speak before Canadian Parliament’s International Grand Committee on big data, fake news and privacy Tuesday.China provides the first peek at its May economic performance on Friday, with economists anticipating the official manufacturing PMI will tick down to 49.9 — a contraction — amid the worsening trade war with the U.S.U.S. GDP data is due Thursday.
And these are the main moves in markets:
Futures on the S&P 500 Index were steady as of 3:02 p.m. New York time. The Euro Stoxx Index climbed 0.2%.The Shanghai Composite Index gained 1.4%, the largest rise in more than a week.The MSCI Asia Pacific Index advanced 0.1%.The MSCI Emerging Market Index climbed 0.3%.
The Bloomberg Dollar Spot Index advanced 0.2%.The euro fell 0.1% to $1.1192.The British pound dipped 0.3% to $1.2680 during a holiday in the U.K.The offshore yuan gained 0.1%.
Germany’s 10-year yield fell three basis points to -0.14%, the lowest in about three years.France’s 10-year yield declined two basis points to 0.259%, the lowest in more than two years.Italy’s 10-year yield gained 12 basis points to 2.677%, the highest in a week on the biggest climb in more than six weeks.
Brent crude increased 2.07% to $70.09 a barrel.Gold gained less than 0.1% to $1,289.90 an ounce.
--With assistance from Cormac Mullen, Andreea Papuc and Adam Haigh.
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