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Stocks Climb as Trade Angst Eases Dollar Steadies

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European stocks rose with U.S. futures, tracking gains in Asia, as the panic surrounding a potential global trade war showed signs of easing. Treasury yields and the dollar stabilized, and oil edged higher.

All sectors advanced as the Stoxx Europe 600 Index opened in the green following three days of losses. Earlier in Asia, equity markets struggled for direction before climbing. Shares in Japan and China both reversed declines, though the Shanghai Composite Index remained below the 3,000 level it fell through on Tuesday. Oil recovered to trade above $65 a barrel even as Iran signaled OPEC may fail to agree on output limits when it meets at the end of the week. The euro and pound fell.

The threat from U.S. President Donald Trump for tariffs on an additional $200 billion of Chinese goods was the latest in a series of shots in a spat between the world’s two biggest economies that could yet escalate into a full-blown trade war. Assets in emerging markets have been hit especially hard as the tensions coincide with projections for steeper U.S. interest-rate hikes.

Developing-nation stocks rose on Wednesday, paring some of their plunge a day earlier. Turkey’s lira fell again ahead of an election this weekend.

Elsewhere, the onshore yuan rose after the People’s Bank of China set its daily reference rate at a stronger level than all analyst and trader projections. Indonesia’s stocks were the worst performers in Asia as traders returned after a holiday.

Draghi, Reserve Bank of Australia Governor Philip Lowe, Bank of Japan Governor Haruhiko Kuroda, and Fed Chairman Jerome Powell join a panel on central bank policy in Sintra, Portugal, on Wednesday.

Thailand, Philippines and Brazil central bank decisions due Wednesday.

Bank of England rate decision on Thursday.

Also on Thursday: U.S. jobless claims, New Zealand GDP, South Korea export data.

The Organization of Petroleum Exporting Countries meets in Vienna on Friday.

And here are the main market moves:

Stocks

The Stoxx Europe 600 Index gained 0.5 percent as of 8:02 a.m. London time.

Futures on the S&P 500 Index increased 0.2 percent.

The U.K.’s FTSE 100 Index rose 0.7 percent.

Germany’s DAX Index rose 0.5 percent.

The MSCI Emerging Market Index climbed 0.5 percent, the first advance in more than a week and the largest increase in more than two weeks.

The MSCI Asia Pacific Index climbed 0.6 percent, the first advance in more than a week and the biggest increase in more than two weeks.

Currencies

The Bloomberg Dollar Spot Index increased less than 0.05 percent to the highest in more than 11 months.

The euro decreased 0.2 percent to $1.1568, the weakest in more than three weeks.

The British pound fell 0.1 percent to $1.3156, the weakest in about seven months.

The Japanese yen declined 0.1 percent to 110.19 per dollar.

The Turkish lira sank 0.4 percent to 4.7615 per dollar, the weakest on record.

Bonds

The yield on 10-year Treasuries rose one basis point to 2.90 percent, the first advance in a week and the biggest advance in more than a week.

Germany’s 10-year yield gained one basis point to 0.38 percent, the first advance in more than a week.

Britain’s 10-year yield increased less than one basis point to 1.283 percent, the first advance in more than a week.

Italy’s 10-year yield decreased one basis point to 2.549 percent, the lowest in more than two weeks.

Commodities

West Texas Intermediate crude rose 0.6 percent to $65.48 a barrel.

Gold dipped 0.1 percent to $1,273.71 an ounce, the weakest in six months.

Brent crude gained 0.5 percent to $75.46 a barrel.

Source: Bloomberg