(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.
U.S. index futures rallied alongside European and Asian stocks as traders cheered a reduction in political tension from Italy and Britain to Hong Kong. Treasuries and gold retreated, while the dollar slipped.
Contracts on the three major U.S. equity gauges jumped, signaling stocks will rebound from Tuesday's declines. All 19 industry groups in the Stoxx Europe 600 index advanced, almost erasing the gauges August's decline as luxury-good makers including LVMH and Richemont advanced. Markets outperformed in Italy, where a new political coalition was taking shape that may be more conciliatory toward the European Union.
Shares in Hong Kong surged the most since 2018, buoying equities across Asia, after embattled leader Carrie Lam said she formally withdrew legislation to allow extraditions to China, the detonator for three months of often-violent protests. In the U.K., the pound strengthened along with stocks after Parliament took a crucial first step to block a no-deal Brexit. The euro advanced and most European bonds fell.
Traders are rushing back into riskier assets as event risks seem to be receding, from a possible Chinese crackdown in Hong Kong to a confrontation between the European Union and two of its biggest members. At the same time, investors remain on the alert for any news on China-U.S. trade talks, with officials from both countries struggling to agree on the next step after Washington rejected Beijing's request to delay tariffs that took effect over the weekend.
Elsewhere, oil ticked higher and the onshore yuan rose after a stronger-than forecast daily currency fixing. In the U.S., with Florida orange groves seemingly escaping major damage from Hurricane Dorian, concern now turns to soy, corn and cotton fields as well as livestock in Georgia and the Carolinas as the storm churns northward.
Here are some key events coming up:
These are the main moves in markets:
--With assistance from Adam Haigh and April Ma.
To contact the reporter on this story: Robert Brand in Cape Town at firstname.lastname@example.org
To contact the editors responsible for this story: Christopher Anstey at email@example.com, ;Samuel Potter at firstname.lastname@example.org, Todd White
For more articles like this, please visit us at bloomberg.com
©2019 Bloomberg L.P.