European stocks and US equity futures drifted on Monday following a mixed session in Asia as a big week for central-bank policy gets underway. Treasuries fell.
The Stoxx Europe 600 Index was little changed, with Deutsche Bank boosting lenders after reports that it’s considering setting up a bad bank with troubled assets. Contracts on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 gauges all nudged higher. Japanese and Australian shares slipped, while equities in Hong Kong rose after the government suspended a controversial extradition bill. Treasury yields ticked higher and European bonds were mixed as investors looked ahead to a week in which the Federal Reserve, the Bank of Japan and the Bank of England all set monetary policy.
Investors will be scrutinizing the Fed’s decision and messaging on Wednesday for signals on the chances of rates cuts ahead. Meanwhile, US Commerce Secretary Wilbur Ross reiterated that the prospect of a major trade deal is unlikely to emerge from a possible meeting between President Donald Trump and Chinese President Xi Jinping at the Group of 20 summits in Osaka this month.
Elsewhere, oil edged lower as Saudi Arabia expressed hope that OPEC and its allies will agree to extend production cuts into the second half. Bitcoin jumped, heading toward its highest close in more than a year.