Europe stocks steady as treasuries gain, dollar up

European stocks steadied as investors sought to put Wednesday’s selloff behind them and as bonds rose. The dollar was stronger and the yen pared some of yesterday’s gains.

The Stoxx Europe 600 Index held its ground, trading little changed even after most equity gauges in Asia retreated.

The dollar was stronger for the third day in four, while the British pound extended its retreat for a fourth day.

The yield on 10-year US Treasuries declined after China said a news report on officials having recommended slowing or halting purchases of the securities might have cited a "wrong source." West Texas crude oil was unchanged above $63 a barrel.

Despite the drop in Asian equities, traders appear to be shaking off some of the concerns that led to Wednesday’s selloff. Analysts at Morgan Stanley advised investors not to worry in a note published in US hours on Wednesday, countering earlier warnings by Bill Gross that Treasuries are in a bear market.

Robust demand for a 10-year bond auction also helped stem concerns.

Elsewhere, the Canadian dollar and Mexican peso added to declines triggered by a report that Canadian officials see rising odds the Trump administration will leave Nafta.

Here are some of the main events to watch for in the rest of the week:

US inflation data are forecast to show price pressures remain muted for now, giving hawks little reason to argue for faster tightening. Outgoing New York Federal Reserve Bank President Bill Dudley is scheduled to speak later this week.

JPMorgan Chase & Company and Wells Fargo & Co. are due to report earnings on Friday.

And these are the main moves in markets:

Stocks

The Stoxx Europe 600 Index dipped less than 0.05% as of 8:29am London time. The MSCI All-Country World Index decreased 0.2% to the lowest in a week on the biggest dip in more than three weeks.

The UK’s FTSE 100 Index rose 0.1% to the highest on record.

The MSCI Emerging Market Index sank 0.3% to the lowest in a week. Futures on the S&P 500 Index gained 0.1% to the highest on record.

Currencies

The Bloomberg Dollar Spot Index rose 0.2%. The euro dipped 0.1% to $1.1933, the weakest in more than two weeks. The British pound fell 0.2% to $1.3477, the weakest in two weeks.

The Japanese yen decreased 0.2% to 111.69 per dollar.

Bonds

The yield on 10-year Treasuries fell two basis points to 2.54%, the first retreat in more than a week and the biggest drop in almost two weeks. Germany’s 10-year yield dipped three basis points to 0.52%, the largest decrease in more than two weeks.

Britain’s 10-year yield fell three basis points to 1.256%, the biggest fall in more than a week.

Commodities

West Texas Intermediate crude increased less than 0.05% to $63.59 a barrel, the highest in more than two years. Gold gained 0.1% to $1 317.75 an ounce.