European stock markets are ending the week on a positive note as the latest economic data from China offered some reassurance to investors concerned about the global growth outlook. Treasuries held declines and the dollar pushed higher for the third day.
The Stoxx Europe 600 Index advanced, with most industry sectors in the green, while futures on the S&P 500, Dow Jones and Nasdaq gained. Weakness in the yen helped boost Japanese shares, while Chinese equities outperformed as an increase in the Caixin manufacturing gauge to a three-month high and confirmation that MSCI Inc. will raise the weight of Chinese stocks in its global benchmarks buoyed sentiment.
West Texas oil futures climbed toward $58 a barrel as strengthening economic trends in the US signaled to tighten supplies.
After a 16% surge from Christmas through the start of this week, MSCI’s gauge of global equities has tread water as investors await progress in US-China trade negotiations. American officials are preparing a final deal that Donald Trump and China President Xi Jinping could sign in weeks, people familiar with the matter said, even as debate continues in Washington over whether to push Beijing for more concessions.
Meanwhile, geopolitical concerns remain in the background, amid tensions between India and Pakistan and the failure of a summit between Kim Jong Un and Trump to achieve an agreement between the US and North Korea on denuclearization.
Elsewhere, iron ore extended its rally, fueling a gain in the Bloomberg Commodity Index. Emerging-market stocks snapped a three-day losing streak.