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? Asian stocks post losses, but European markets were largely in positive territory.
? Oil falls 2% on reports of potential output increase.
? Spain's borrowing costs jump as PM faces no-confidence vote.
The dollar strengthened and benchmark Treasury yields dipped as investors assessed geopolitical developments between the U.S. and North Korea and trade concerns over a U.S. auto import probe. Oil prices fell sharply amid reports that Saudi Arabia, Russia and the United Arab Emirates were discussing an output increase of about 1 million barrels per day. Stock markets were mixed and futures pointed to a higher opening on Wall Street.
Ten-year Treasury yields shed more than 1 basis point to 2.960% as of 7:12 a.m. ET after U.S. President Donald Trump canceled a proposed summit with North Korean leader Kim Jong Un set for June 12 in Singapore, but Pyongyang's conciliatory response that it was still open to talks with the U.S. soothed market concerns. The U.S. has also launched a probe into auto imports that could lead to tariffs.
The Japanese yen and euro fell against the dollar by 0.13% and 0.16%, respectively. Sterling was down 0.33% against the dollar.
"The overhang of the global trade wars remains intact as the signs of easing U.S.-China trade tensions were replaced by the threat of U.S. car tariffs while the cancellation of the US–North Korea summit is not particularly positive for risk assets either," according to a research note from ING.
The Euro Stoxx 50 went up by 0.36%, while the FTSE 100 added 0.20% as U.K. GDP barely grew in the first quarter, as expected. French and German stocks were also on the rise. Meanwhile, Spain's 10-year government bond yields jumped while stocks fell sharply after a no-confidence motion was mooted against Prime Minister Mariano Rajoy.
Asian stocks ended the day mixed, with the Shanghai Composite and Hang Seng finishing lower by 0.42% and 0.56%, respectively, while the Nikkei 225 closed up 0.06%. The S&P 500 is set to open 0.18% higher.
"While Asia stocks reacted badly to the news that President Trump canceled the 12 June Singapore Summit with North Korea, European equities do not seem to care too much," according to TD Securities.
Brent crude oil fell 2.04% to $77.18 per barrel.
The Turkish lira was down 0.52% against the dollar after the Central Bank of Turkey temporarily allowed the repayments of rediscount credits for export to be made in lira at below-market exchange rates. The June 7 monetary policy meeting will be key in the central bank's efforts to shore up the lira, Muhammet Mercan, chief economist at ING Turkey, said in a note.
Société Générale's Jason Daw said the biggest risk to emerging market assets over the coming two to three months is rising questions on whether portfolio risk should be reduced over the rest of the Fed tightening cycle.
Yields on 10-year Italian bonds jumped more than seven basis points to 2.477% while the FTSE MIB, the benchmark stock market index for the Italian national stock exchange, was down 0.66% as the country prepares for a populist coalition-led government. "Although [a Five Star Movement]/League government in Italy would probably be bad news for the country's fiscal position, an imminent push to leave the euro does not appear to be on the cards," said analysts at Capital Economics.
The 10-year yield on German Bund shed more than four basis points to 0.427% after the German IFO business confidence index stabilized in May, providing "hope that a rebound in growth is on the cards in the second quarter," analysts at Capital Economics said in a separate note.
Gold was up 0.05% to $1,310.40 per ounce.
More from S&P Global Market Intelligence:
Fed's Bostic, Harker back three rate hikes in 2018
ECB warns of possible further eurozone slowdown, flags protectionism risks
Canada's PM links US auto tariffs to NAFTA talks
Trump's car tariff threat rattles Asian automakers
Oleg Deripaska quits Rusal board amid pressure over US sanctions
Qatar to allow full foreign ownership of businesses in all sectors
US says Asian exporters selling fiber below market value
Analysts: For Comcast, the cost of pursuing Fox might be splitting from NBCU
Deutsche Bank job cuts 'unavoidable,' CEO says as share price tumbles
The day ahead:
8:30 a.m. ET — U.S. durable goods orders (Econoday consensus: -1.2% monthly)
9:20 a.m. ET — Federal Reserve Chairman Jerome Powell speaks
9:45 a.m. ET — U.S. consumer sentiment (Econoday consensus: 99.0)
11:45 a.m. ET — U.S. Fed's Charles Evans speaks
11:45 a.m. ET — U.S. Fed's Raphael Bostic speaks
11:45 a.m. ET — U.S. Fed's Robert Kaplan speaks
1:00 p.m. ET — U.S. Baker Hughes rig count

