European stocks started the week on a firm footing, rising for the first time in five days as oil and metal gains spurred energy companies and miners. The dollar strengthened against all of its G-10 peers.
Banks also rallied as the Stoxx Europe 600 Index advanced. Crude climbed for an eighth day running, the longest winning streak this year, extending gains after industry data on Friday showed the number of active U.S. rigs falling for the first time in 24 weeks. Industrial metals rose across the board after a private gauge of China’s manufacturing exceeded estimates in June.
Trading volumes in many markets were light before Tuesday’s U.S. holiday and as investors await Friday’s report on the American jobs market. Economic data may provide a key insight for traders in the wake of a hawkish shift from central banks that roiled markets last week.
Meanwhile in Japan, the ruling party lost to an upstart outfit in an election for Tokyo’s assembly, presenting Prime Minister Shinzo Abe with one of his biggest tests since coming to power in late 2012. The Yen reversed an advance.
Here are some key upcoming events:
The New York Stock Exchange closes early on Monday, at 1 p.m. local time, ahead of the Independence Day holiday on July 4.
The Federal Reserve on Wednesday releases the minutes from its June 13-14 policy meeting, at which officials raised interest rates.
German Chancellor Angela Merkel hosts a two-day G-20 summit in Hamburg beginning Friday. President Donald Trump will attend and is expected to hold his first meeting with Russia’s Vladimir Putin on the sidelines.
American employers probably added around 175,000 workers in June and wage growth probably strengthened, consistent with a solid labor market, economists project the U.S. Labor Department to report on Friday.
Here are the main moves in markets:
Japan’s Topix rose as a survey showed confidence grew among manufacturers.
Hong Kong’s Hang Seng and the Shanghai Composite climbed 0.1 percent.
China’s bond connect program with Hong Kong will give offshore investors another way to access the mainland’s $10 trillion debt market.
The Stoxx Europe 600 Index increased 0.8 percent as of 9:40 a.m. in London, with energy companies jumping 1.8 percent.
Futures on the S&P 500 advanced 0.4 percent after the underlying gauge rose 0.2 percent on Friday to round out its worst week since April.
The yen fell 0.4 percent to 112.87 per dollar, after erasing an earlier advance of as much as 0.4 percent.
The Bloomberg Dollar Spot Index rose 0.3 percent after dropping 1 percent last week and touching the lowest level since October.
The pound fell 0.4 percent to $1.2973 after an eight-day rally.
The euro slipped 0.4 percent to $1.1381.
The yield on 10-year Treasuries rose one basis point to 2.31 percent, adding to a 16-basis point surge last week, the steepest since March.
U.K. 10-year yields added two basis points to 1.27 percent.
French and German 10-year yields both fell one basis point.
Wheat jumped to a two-year high on the Chicago Board of Trade as agriculture markets soared on an expanding drought in the U.S. and disappointing data on sowed acreage.
West Texas crude rose 0.4 percent to $46.23 a barrel. WTI has rallied more than 8 percent over eight days, after tumbling from the year’s peak to enter a bear market.
Gold slipped 0.5 percent to $1,235.89 an ounce.