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Europe stocks gain as US futures drop, oil rises

The rebound in stock prices spread to Europe, but markets remained on edge as Asian equities pared their advance while US futures retreated. Treasuries rebounded after Tuesday’s slump, gold climbed and crude advanced.

The Stoxx Europe 600 Index headed for the first increase in eight days as most sectors on the gauge rose. Earlier in Asia, Japan’s benchmarks eked out slim gains at the close after retreating from the session’s highs, while Chinese shares dropped.

The dollar was flat as most commodities rallied.

Markets from Europe to Japan tumbled into oversold territory after the rout of the past week, which was triggered by rising bond yields and the prospects for a return of inflation and subsequent tighter monetary policy.

Amid a slew of calls to "buy the dip," investors will be watching Wednesday’s auction of 10-year Treasuries for clues on where markets go from here.

Elsewhere, oil rose after three days of declines as an industry report showed an unexpected decline in US crude stockpiles. And Bitcoin traded little changed at around $7 700.

Here are some key events scheduled for this week:

Monetary policy decisions are due this week in Russia, Brazil, Poland, Romania, the UK, New Zealand, Serbia, Peru and the Philippines. Earnings season continues with reports from Philip Morris, Tesla, Rio Tinto, L’Oreal and Twitter.

New York Fed President William Dudley and Dallas Fed President Robert Kaplan are among policy officials due to speak.

These are the main moves in markets:

Stocks

The Stoxx Europe 600 Index increased 0.4% as of 8:23am London time, the first advance in more than a week. Futures on the S&P 500 Index sank 1.1%. The MSCI Asia Pacific Index increased 0.2%, the largest climb in more than a week.

The UK’s FTSE 100 Index gained 0.6%, the first advance in more than a week.

The MSCI Emerging Market Index advanced less than 0.05%, the first advance in a week.

Currencies

The Bloomberg Dollar Spot Index decreased less than 0.05%. The euro fell less than 0.05% to $1.2372. The British pound dipped 0.1% to $1.3931, the weakest in almost three weeks.

The Japanese yen gained 0.6% to 108.96 per dollar, the strongest in more than a week. South Africa’s rand declined 0.2% to 11.9431 per dollar. The MSCI Emerging Markets Currency Index rose 0.4%.

Bonds

The yield on 10-year Treasuries dipped four basis points to 2.76%. Germany’s 10-year yield climbed one basis point to 0.70%. Britain’s 10-year yield advanced less than one basis point to 1.523%.

Commodities

West Texas Intermediate crude climbed 0.4% to $63.65 a barrel. Gold climbed 0.5% to $1 330.74 an ounce.

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