(Bloomberg) — Stocks climbed in Europe and U.S. equity futures reversed losses after President Donald Trump said that the China trade deal is “intact,” easing doubts sparked earlier by comments from a senior adviser. Treasuries and the dollar were steady.Technology companies led a broad advance in the Stoxx Europe 600 index, with 18 of 19 industry sectors in the green. Futures on the S&P 500 had opened higher, then tumbled more than 1% after Trump aide Peter Navarro was quoted saying the trade agreement signed in January was over. Crude oil slid along with the offshore yuan, before all the moves began reversing when Navarro said the remark was taken “wildly” out of context. Trump later tweeted that he hoped China would continue living up to the deal. Shares rose across Asia.“It does indicate that the market remains very sensitive to U.S.-China tensions,” Patrick Bennett, head of macro strategy for Asia at Canadian Imperial Bank of Commerce in Hong Kong, said of the reaction to the trade headlines.The swings in risk assets Tuesday followed what had been a constructive session on Wall Street Monday, when equities climbed as investors continued to bet on companies with strong balance sheets and better prospects in a work-from-home economy. Manufacturing data Tuesday are expected to show a rebound from May’s lows.Influential investors had added to the positive sentiment. Steve Schwarzman, chief executive officer of Blackstone Group Inc., said the economy is likely to benefit from a V-type recovery in the next few months, though getting back to 2019 level will take “quite a while.” Hedge fund manager Bill Ackman said he sees gradual improvement on all fronts with so many resources poured into the health-care crisis.Here are some key events coming up:MSCI Inc. on Tuesday announces its market classification review for 2020.The IMF will release new 2020 growth projections on Wednesday.U.S. jobless claims, durable goods and GDP data are due Thursday.A rebalance of Russell indexes is due on Friday.These are the main moves in markets:StocksThe Euro Stoxx 600 Index climbed 0.6% as off 8:05 a.m. in London.S&P 500 futures gained 0.1%, after having dropped as much as 1.6% earlier.MSCI Asia Pacific Index rose 0.6%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The Japanese yen fell 0.2% to 107.13 per dollar.The euro gained 0.1% to $1.1272.BondsThe yield on 10-year Treasuries was flat at 0.71% after dropping as much as three basis points earlier.Germany’s 10-year yield dipped one basis point to -0.42%CommoditiesWest Texas Intermediate crude fell 0.5% to $40.50 a barrel.Gold slipped 0.3% to $1,749 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
