European stocks advance, treasury yields decline

London - European stocks climbed following an uncertain session in Asia as investors gauge the implications of the latest personnel changes in the Trump administration. Treasury yields extended declines after lackluster US retail sales stoked concern that consumer spending is cooling.

The Stoxx Europe 600 Index advanced for the first time in three sessions, with insurance and technology companies the biggest winners, and US futures pointed toward a firmer open. The yen gained for a second day while the euro held steady and Treasury yields tested early-February lows on bets the Federal Reserve won’t signal quicker interest-rate hikes when it meets next week. French consumer prices was unchanged on month in February.

Traders continue to mull prospects for US trade protectionism after incoming White House economic adviser Larry Kudlow signaled support for a strong dollar and took a tough line on China.

The lackluster retail sales data provided the last major economic indicator prior to the Federal Reserve’s policy decision next week. While an increase in borrowing costs at the meeting is seen as a done deal, it remains an open question whether US policy makers will lift their expectations for the pace of future increases.

Elsewhere, oil steadied around $61 a barrel as signs of stronger US fuel consumption balanced OPEC forecasting for the first time that new supplies from its rivals will exceed demand growth this year. Bitcoin touched the lowest level in a month.

Here are some of the key things happening this week:

• Japan industrial production is out on Friday.

• Inflation data on Thursday is a focal point in the eurozone.

• EU27 government officials discuss the European Union’s Brexit position.

And these are the main moves in markets:

Stocks

• The Stoxx Europe 600 Index climbed 0.2% as of 09:03.

• The MSCI All-Country World Index advanced 0.1%.

• Futures on the S&P 500 Index increased 0.2%.

• The UK's FTSE 100 Index gained 0.1%.

Currencies

• The Bloomberg Dollar Spot Index fell less than 0.05% to the lowest in more than a week.

• The euro advanced less than 0.05% to $1.237.

• The Japanese yen increased 0.2% to 106.08 per dollar, the strongest in more than a week.

• The rand declined 0.2% to R11.80, the biggest fall in a week.

• The British pound climbed 0.1% to $1.3975, hitting the strongest in more than three weeks with its fifth consecutive advance.

Bonds

• The yield on 10-year Treasuries declined less than one basis point to 2.82%, the lowest in two weeks.

• Germany’s 10-year yield advanced less than one basis point to 0.60%.

• Britain’s 10-year yield climbed less than one basis point to 1.441%.

Commodities

• West Texas Intermediate crude advanced 0.2% to $61.11 a barrel.

• Gold gained less than 0.05% to $1 324.90 an ounce.

• LME copper decreased 0.4% to $6 961.00 per metric ton.

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