(Bloomberg) -- Stocks climbed globally along with U.S. equity futures as investors digested China’s decision to tighten intellectual property rules, a move that may boost the chances of a trade deal between the world’s largest economies. Treasuries and the yen both dipped.
Mining and automaker shares led the Stoxx Europe 600 Index higher. Equities rose across Asia and outperformed in Hong Kong after local council elections brought a landslide victory to pro-democracy candidates. In the latest trade twist, China said over the weekend it will raise penalties on intellectual property violations as it tries to smooth over one of the sticking points in talks with the U.S. government. Futures on the three main American stock gauges climbed. The dollar steadied against its major peers.
Stocks
Stocks are on course to round out a third month of gains globally, though bonds and other haven investments remain well-supported. While the S&P 500 Index rose on Friday after President Donald Trump said he was “very close” to a trade pact, the yield on 10-year U.S. notes has steadied around 1.78%, down from the three-month intraday high of 1.97% touched in early November.
“The markets are pretty much priced for a deal to go ahead, and that may be the case, but we may see that pushed out to 2020,” Eleanor Creagh, market strategist at Saxo Capital Markets, told Bloomberg TV in Sydney. “The key sticking point is really going to be the rolling back of tariffs.”
Elsewhere, China was planning a record sale of sovereign bonds in dollars, with a potential $6 billion offering, according to people familiar with the discussions. West Texas-grade oil futures edged higher, after ending Friday barely changed on the week.
Here are some key events coming up this week:
Federal Reserve Chairman Jerome Powell speaks on Monday at the Greater Providence Chamber of Commerce annual dinner in Providence, Rhode Island.Alibaba starts trading in Hong Kong on Tuesday.Reserve Bank of Australia Governor Philip Lowe will give a speech on unconventional monetary policy on Tuesday evening in Sydney.U.S. consumer spending data is due Wednesday, along with GDP, jobless claims and durable goods.The U.S. celebrates Thanksgiving on Thursday, when equity and bond markets will be shut.The Bank of Korea sets policy on Friday.
These are the main moves in markets:
Stocks
The Stoxx Europe 600 Index jumped 0.7% as of 9:23 a.m. London time.Futures on the S&P 500 Index gained 0.3%.Italy’s FTSE MIB Index jumped 0.8%.Hong Kong’s Hang Seng Index advanced 1.5%.
Currencies
The Bloomberg Dollar Spot Index was little changed.Sterling climbed 0.4% to 0.8552 per euro.The euro was little changed at $1.1016.The Japanese yen declined 0.2% to 108.85 per dollar.Bitcoin sank 8.4% to $6,726.
Bonds
The yield on 10-year Treasuries gained one basis point to 1.78%.Germany’s 10-year yield increased one basis point to -0.35%.Italy’s 10-year yield fell one basis point to 1.167%.
Commodities
West Texas Intermediate crude increased 0.1% to $57.83 a barrel.Iron ore climbed 2.9% to $89 per metric ton.
--With assistance from Adam Haigh and Sybilla Gross.