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Stocks Gain as Euro Jumps on Migration Oil Slips

Financial_Markets

European stocks tracked a rally in Asia as global markets headed for an upbeat end to what has been a tumultuous quarter. The euro jumped as leaders reached a deal on migration.

Europe’s single currency gained the most in a month, and Italian 10-year government bond futures rose after European Union leaders agreed to a package of measures to stem the flow of migrants, easing concern over a standoff between Italy and the rest of the the trading block.

The Stoxx Europe 600 Index gained along with U.S. equity-index futures. Shares in Hong Kong and Shanghai led the advance in Asia after a recent battering on escalating trade war fears, while a gauge of emerging-market stocks rebounded from the lowest level in 10 months. The offshore yuan rose, halting an 11-day decline that was triggered by concern about Chinese policy makers’ intentions.

Investors are looking for reasons for cheer at the end of a miserable quarter overshadowed by trade tensions and political risk. It’s early to tell how long the European Union’s united front and respite in the yuan’s decline will last, but for now the risks to financial markets appear to have eased.

These are key events coming up for the remainder of this week:

Indonesia’s central bank is expected to raise its benchmark interest rate for a third time since May in a bid to halt a deepening currency rout. Read our decision day guide here.

U.S. personal spending probably increased in May for a third month, economists forecast ahead of Friday’s data.

China manufacturing and non-manufacturing PMI are due on Saturday.

Here are the main market moves:

Stocks

The Stoxx Europe 600 Index fell 0.8 percent as of 8:01 a.m. London time.

The U.K.’s FTSE 100 Index fell 0.1 percent.

Germany’s DAX Index fell 1.4 percent.

Japan’s Nikkei 225 Stock Average jumped 0.2 percent.

The Shanghai Composite Index surged 2.2 percent.

Futures on the S&P 500 Index rose 0.4 percent.

Currencies

The Bloomberg Dollar Spot Index fell 0.3 percent.

The euro jumped 0.6 percent to $1.1639.

The British pound climbed 0.3 percent to $1.3112.

The Japanese yen fell 0.1 percent to 110.62 per dollar.

The Australian dollar gained 0.5 percent to 0.739 per dollar.

Bonds

Germany’s 10-year yield climbed two basis points to 0.34 percent.

Britain’s 10-year yield advanced two basis points to 1.272 percent.

The yield on 10-year Treasuries climbed one basis point to 2.85 percent.

Commodities

West Texas Intermediate crude fell 0.3 percent to $73.20 a barrel.

Brent crude fell 0.1 percent to $77.77 a barrel.

Gold rose 0.2 percent to $1,251.33 an ounce.

Source: Bloomberg