(Bloomberg) -- European stocks advanced with futures on U.S. equity indexes as investors prepared for the first big third-quarter earnings and further developments in the trade dispute between the world's two largest economies. Treasuries also climbed following a holiday.
The Stoxx Europe 600 Index rose, with 18 of 19 sectors in the green led by travel-company shares. While Asian equities were mixed, Japan's gauge jumped as investors there returned from a long weekend to react to progress announced on a U.S.-China interim trade deal. Treasury Secretary Steven Mnuchin told CNBC television Monday the sides made "substantial progress" last week in negotiations and he expected Presidents Donald Trump and Xi Jinping to finalize the accord at a summit in Chile next month. Contracts on the three main American equity indexes all rallied after the underlying benchmarks edged lower on Monday.
The pound strengthened as the European Union's chief negotiator insisted a Brexit accord is possible this week, even though it's getting "more and more difficult." Crude oil futures slipped and gold drifted.
The earnings season begins in earnest on Tuesday, with results due from big U.S. banks including JPMorgan and Goldman Sachs. The reports will be closely parsed by investors given the global backdrop of slowing growth, falling interest rates and a host of unpredictable macro risks from the impeachment investigation into Trump and the trade war to Brexit and Turkey's incursion into Syria.
"We would advise our clients to take some profits here going into this rally," Tuan Huynh, Asia-Pacific chief investment officer at Deutsche Bank Wealth Management, said on Bloomberg Television. In the past, "Trump has announced some sort of agreement but in the end it turns out to be a little bit premature," so caution is warranted on the trade front, he said.
Meanwhile, the Turkish lira steadied and the country's benchmark stock index rose after Trump imposed milder penalties over its military campaign in Syria than U.S. lawmakers had demanded.
Here are some key events coming up this week:
Here are the main moves in market:
--With assistance from Andreea Papuc.
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