(Bloomberg) -- European stocks and U.S. equity futures struggled for traction on Friday as a busy week of central bank meetings drew to close, with focus now likely to shift back to the trade war. The pound strengthened and Treasuries rose.
The Stoxx Europe 600 Index edged higher overall led by retail shares, though national gauges were mixed and range bound. Contracts on the three main U.S. equity indexes eeked out gains after the S&P 500 Index closed less than 1% from a record high on Thursday. Sterling rose a second day as European Commission President Jean-Claude Juncker expressed optimism a Brexit deal could be reached by Oct. 31.
Benchmark Treasuries advanced for a fifth day while the yuan climbed after the People’s Bank of China planned to drain funds via a bill sale in Hong Kong. Oil prices nudged up amid still-elevated tensions in the Middle East.
After a slew of monetary policy decisions this week, investors attention is poised to turn to the outlook for negotiations between the U.S. and China as trade deputies from both nations prepare to meet. Concerns linger about the state of the global economy, and the OECD this week lowered its world growth forecast.
“Stocks can continue to rise because they are supported by solid and pretty sturdy fundamentals, but there will be a lot more volatility along the way,” Kate Warne, investment strategist at Edward Jones, told Bloomberg TV. “There’s a lot more monetary stimulus coming into the system,” she said.
Elsewhere, Asian stocks saw modest gains on reduced volumes, except in India, where equities soared after the country cut its corporate tax rate. The rupee also climbed. Chinese and Hong Kong shares were flat as China’s modest cut to a reference rate for bank loans failed to impress investors.
Some key events to keep an eye on for the remainder of this week:
- Friday is quadruple witching day for U.S. markets. When the quarterly expiration of futures and options on indexes and stocks occurs on the same day, increased volatility and trading can follow.
Stocks
- Futures on the S&P 500 Index increased 0.1% as of 8:08 a.m. London time.
- The Stoxx Europe 600 Index gained 0.1%.
- The U.K.’s FTSE 100 Index decreased 0.4%.
- The MSCI Asia Pacific Index advanced 0.4%.
- The MSCI Emerging Market Index increased 0.4%.
- The Bloomberg Dollar Spot Index declined 0.2%.
- The euro advanced 0.2% to $1.1064.
- The British pound climbed 0.3% to $1.2568.
- The Japanese yen increased 0.1% to 107.87 per dollar.
- The yield on 10-year Treasuries declined two basis points to 1.77%.
- Germany’s 10-year yield increased less than one basis point to -0.50%.
- Britain’s 10-year yield gained three basis points to 0.661%.
- Gold increased 0.3% to $1,504.17 an ounce.
- West Texas Intermediate crude gained 0.8% to $58.61 a barrel.