(Bloomberg) — U.S. equity futures fluctuated and Treasuries were steady before a speech by Federal Reserve Chair Jerome Powell on the outlook for the economy.
The Europe Stoxx 600 Index rose, led by gains in banks and travel shares advanced. Hardware maker Logitech International SA slumped as Apple Inc. plans to launch its own audio products and stop selling rival headphones.
The pound weakened after a report that the European Union has no plans to offer concessions to Boris Johnson before next week’s Brexit deadline. The bloc is ready to let U.K. talks drag on into November or December, and even take a chance on Johnson pulling the plug on the deliberations rather than compromise on its red lines, according to a senior EU diplomat.
After the S&P 500’s biggest advance in almost four weeks yesterday, investors seem to be taking a break to digest new information. Powell and European Central Bank Chief Economist Philip Lane are set to deliver the keynote addresses at a meeting by the National Association for Business Economics on Tuesday.
In recent weeks, Fed officials have stressed that the U.S. recovery is highly dependent on the nation’s ability to better contain infections, and that further fiscal stimulus is likely needed to support jobs and incomes.
There are also lingering concerns about the trajectory of the pandemic and its effect on the economy. In Germany, new coronavirus cases jumped the most since mid-April and Italy is set to tighten restrictions to curb the spread of the virus.
“The momentum of the recovery is clearly fading now and the positive surprises have ended,” according to strategists at Dutch asset manager Robeco. “With winter approaching in the northern hemisphere, we are already seeing more infections across much of Europe and local lockdowns that will hurt the economic recovery.”
Here are some key events coming up:
On Wednesday, the minutes of the Sept. 15-16 meeting of the FOMC could be especially fruitful for Fed watchers, beginning with details of the debate on conditions necessary to trigger a rate increaseThe U.S. Vice Presidential debate takes place in Salt Lake City on WednesdayThough the final formal round of talks is over, the British government expects trade negotiations to continue up to the EU summit in mid-October.
Futures on the S&P 500 Index gained 0.1% as of 7:39 a.m. New York time.The Stoxx Europe 600 Index rose 0.2%.The MSCI Asia Pacific Index climbed 0.7%.The MSCI Emerging Market Index increased 0.8%.
The Bloomberg Dollar Spot Index was little changed at 1,168.87.The euro rose 0.1% to $1.1797.The British pound dipped 0.2% to $1.2951.The Japanese yen strengthened 0.1% to 105.61 per dollar.
The yield on 10-year Treasuries declined one basis point to 0.77%.The yield on two-year Treasuries declined less than one basis point to 0.14%.Germany’s 10-year yield gained less than one basis point to -0.51%.Britain’s 10-year yield decreased less than one basis point to 0.284%.
West Texas Intermediate crude increased 1.4% to $39.92 a barrel.Gold strengthened 0.2% to $1,917.87 an ounce.LME copper rose 0.3% to $6,546 per metric ton.
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