Stocks headed for a positive end to a tumultuous week in which political developments in Europe and escalating trade tensions roiled markets. Treasuries edged lower and the dollar was steady.
The Stoxx Europe 600 gauge gained, led by banks and basic-resources stocks. Italy’s benchmark index jumped the most in four months as populist parties surged to power, bringing to an end a three-month political deadlock. S&P equity-index futures also advanced, signaling a higher U.S. open as President Donald Trump’s administration pushes ahead with tariffs on imports of metals from its key trading partners.
German bunds led a drop in core European bonds as a risk-on mood took hold, though Italian debt gained. Spanish assets shrugged of uncertainty surrounding the future of Prime Minister Mariano Rajoy, with the nation’s bonds and stocks rising in early trade.
Investors remain optimistic that threats of more international tariffs will not materialize into an all-out trade war between the U.S. and its key partners, while the latest developments in Italy also provide some well-needed relief within Europe. The focus on Friday shifts to the latest U.S. jobs report, with payrolls expected to rise and the unemployment rate seen holding at the lowest since 2000.
Oil was steady as rising U.S. output overshadowed a surprise decline in crude stockpiles, with traders also focused on whether Saudi Arabia and Russia will boost production.
Terminal users can read more in Bloomberg’s Markets Live blog.
These are some key events to watch this week:
The U.S. employment report for May is due Friday. It’s the last before the June Fed meeting. Automakers report May U.S. sales the same day. Also Friday: some onshore Chinese stocks join MSCI Inc.’s global indexes. On Saturday U.S. Secretary of Commerce Wilbur Ross will travel to Beijing for more talks with Vice Premier Liu He on topics including ZTE Corp. and trade.
These are the main moves in markets:
Stocks
The Stoxx Europe 600 Index gained 0.8 percent as of 8:51 a.m. London time. The U.K.’s FTSE 100 Index rose 0.7 percent. Italy’s FTSE MIB Index climbed 2.8 percent, the largest increase in more than 16 weeks. Spain’s IBEX Index increased 1.1 percent, the biggest climb in eight weeks. The MSCI Asia Pacific Index advanced less than 0.05 percent. Futures on the S&P 500 Index climbed 0.4 percent.
Currencies
The euro fell less than 0.05 percent to $1.1692. The British pound decreased 0.1 percent. The Japanese yen fell 0.4 percent to 109.23 per dollar, the largest fall in more than two weeks. The Bloomberg Dollar Spot Index advanced less than 0.05 percent.
Bonds
The yield on 10-year Treasuries gained one basis point to 2.87 percent. Britain’s 10-year yield advanced three basis points to 1.263 percent. Italy’s 10-year yield dipped 15 basis points to 2.641 percent, the lowest in a week. Spain’s 10-year yield decreased eight basis points to 1.425 percent, the lowest in more than a week. Germany’s 10-year yield increased three basis points to 0.37 percent, the highest in a week. Japan’s 10-year yield increased one basis point to 0.048 percent.
Commodities
Gold advanced 0.1 percent to $1,299.17 an ounce. West Texas Intermediate crude decreased 0.1 percent to $66.97 a barrel. Brent crude gained less than 0.05 percent to $77.57 a barrel. — Bloomberg

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