(Bloomberg) -- Stocks fell in Europe and most of Asia while U.S. index futures drifted as investors weighed prospects for Federal Reserve policy easing against the backdrop of threats to global growth and lingering trade tensions.
The Stoxx Europe 600 index dropped a fourth day, with real estate and health care among the biggest losers. Futures for the S&P 500 index nudged higher a day after U.S. stocks' largest decline this month, which was triggered when Federal Reserve member James Bullard played down the chances of a 50-basis-point interest rate cut next month. Ten-year Treasury yields climbed above 2%, oil rose to a four-week high on supply concerns, and gold gave up some recent gains. Shares slid in Japan and Australia, while benchmarks in Hong Kong and India edged higher.
Investor caution is returning ahead of a meeting between Donald Trump and Xi Jinping set for Saturday. While the presidents are expected to discuss trade tensions, a major breakthrough is unlikely. Trump's advisers are pushing him not to set a hard deadline, to avoid a repeat of the situation that resulted in last month's breakdown, and Washington may delay new on an additional $300 billion of Chinese imports to give negotiators breathing room. Meanwhile, traders are hoping the Fed will mitigate the impact of the trade war on global growth with deep cuts.
"My biggest concern here is that people think higher tariffs, or the threat of higher tariffs, can be offset by the promise of lower rates," David Kelly, chief global strategist at JPMorgan Asset Management, told Bloomberg TV. "That's not going to work."
Elsewhere, Bitcoin surged above $12,000 for the first time in more than a year, and briefly came within striking distance of the $13,000 mark. New Zealand's dollar fluctuated after its central bank left rates unchanged.
Here are some key events coming up:
These are the main moves in markets:
--With assistance from Ksenia Galouchko.
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