European stocks rise with oil as haven dash eases

London - European stocks advanced as Daimler’s results helped offset recent market caution. Havens including gold and Treasuries edged lower while oil gained on the prospect of an extension to production cuts.

The Stoxx Europe 600 Index rose for the first day in three, boosted by auto shares after Daimler said first-quarter profit almost doubled on surging demand.

The yield on 10-year US notes was little changed after closing on Tuesday below 2.3% for the first time in four months.

Crude climbed a seventh day as Saudi Arabia was said to support an extension of Opec-led output cuts.
Global equity markets are entering a key period, with the earnings season ramping up against a backdrop of mounting geopolitical tensions around Syria and North Korea as well as elections in Europe.

US President Donald Trump’s struggle to push through his fiscal agenda and the debate over the pace of monetary policy adjustment in the world’s biggest economy also cloud the picture.

“Tensions with North Korea, the Syrian crisis, US internal policy squabbles and French political uncertainty will not clear up overnight,” strategists at Societe Generale led by Vincent Chaigneau wrote in a note.
Here’s what investors are watching:

US oil inventories dropped 1.3 million barrels last week, the American Petroleum Institute is said to have reported. The more official EIA data due today may show stockpiles declined by 1.5 million barrels.

The report is due at 10:30 in Washington. The US-Russia relationship will be closely monitored as Rex Tillerson visits Moscow.

Canada will probably hold its benchmark interest rate at 0.5% while Brazil will likely lower its key rate by a full percentage point, the biggest cut since 2009, as inflation has slowed by half in the last year.

Here are the main moves in markets:

Currencies

The Bloomberg Dollar Spot Index was little changed as of 7:24 in New York. The euro was also steady at $1.0602 after gaining for two days.

The yen fell less than 0.1% to 109.67 against the dollar, erasing an earlier gain of 0.3%.

Stocks

The Stoxx Europe 600 rose 0.2%, paring an earlier advance; Daimler shares climbed 0.9%. Futures on the S&P 500 declined 0.1%, erasing an earlier gain. The benchmark gauge finished 0.1% lower on Tuesday.

Bonds

The yield on 10-year Treasuries was little changed at 2.30%. The rate dropped seven basis points on Tuesday. German 10-year yields were little changed at 0.21%, near the lowest level since February.

Commodities

West Texas Intermediate oil climbed 0.4% to $53.62 a barrel, after advancing for six straight sessions. Gold was 0.1% lower at $1,273.77 an ounce, after jumping 1.6% on Tuesday to the highest since November 9.

Asia

South Korean stocks and the won gained for the first time in seven days, and Hong Kong equities erased losses to rally in late trading.  

Japan’s Topix fell to the lowest level of the year as exporters and banks tumbled on the yen’s earlier strength.

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