➤ Global stocks rise, as China grants tariff waivers for US soybeans imports.
➤ Pound gains as UK Supreme Court decision dims chances of no-deal Brexit.
➤ China central bank in no hurry to cut interest rates.
U.S. equities tracked gains from global stocks amid U.S.-China trade optimism, and sterling strengthened as chances of a no-deal Brexit dimmed after the U.K. Supreme Court ruled against Prime Minister Boris Johnson's decision to suspend Parliament.
The Chinese government reportedly granted tariff waivers to domestic firms to encourage the purchase of soybeans from the U.S. The two sides wrapped up the latest round of talks last week and are looking to hold face-to-face discussions in October.
The S&P 500 and Nasdaq 100 opened 0.4% and 0.5% higher at 9:30 a.m. ET. The FTSE 100 lost 0.4%, while France's CAC 40 added 0.2% and Germany's DAX was little changed.
In Asia, the Shanghai SE Composite rose 0.3% and Hong Kong's Hang Seng added 0.2%.
Japan's Nikkei 225 ticked up 0.1% amid reports that a lack of commitment that the U.S. will not impose auto tariffs on autos and auto parts imported from Japan could delay a trade agreement between the two nations. Japanese Foreign Minister Toshimitsu Motegi said the auto tariff issue "will not be something to worry about."
Business activity growth in Japan's private sector slowed in September on the back of a continued manufacturing downturn.
Among currencies, sterling rose 0.4% versus the dollar around 9:30 a.m. ET, as the U.K. Supreme Court declared Johnson's decision to suspend Parliament for five weeks as unlawful.
The ruling marks a defeat for Johnson, who wants to leave the EU by Oct. 31, with or without a deal. The decision, which follows appeals on two divergent decisions, raises hopes that a no-deal Brexit could be avoided.
The euro gained 0.1% against the dollar as the Ifo Institute's survey for September showed the German business climate improved more than expected, but business expectations deteriorated to a decade low. European Central Bank President Mario Draghi said there were no "convincing signs" of a rebound in growth in the eurozone in the near future as the economy's growth nearly stalled in September.
The dollar spot index, which measures the currency against a basket of peers, was down 0.1%. St. Louis Fed President James Bullard said Sept. 23 that the Federal Reserve may have to cut interest rates again due to a global economic slowdown, while San Francisco Fed President Mary Daly said the Fed "can and should offset" ongoing global growth risks through lower interest rates.
The Chinese yuan rose 0.1% as People's Bank of China President Yi Gang said that the Chinese economy was in a "reasonable range" and that the central bank was not in a hurry to significantly lower interest rates or pursue quantitative easing, but would rather follow a "normal monetary policy" for as long as possible.
The Japanese yen slipped 0.1%.
In bond markets, U.S. 10-year Treasury yields lost 3 basis points to 1.697% around 9:30 a.m. ET. Elsewhere, the yield on 10-year German Bunds were little changed.
Among commodities, Brent crude lost nearly 1% and gold lost 0.4%.
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The day ahead:
10 a.m. ET – U.S. consumer confidence index (Econoday consensus: 133.0)
10 a.m. ET – U.S. Richmond Fed manufacturing index (Econoday consensus: -1)
10 p.m. ET – Reserve Bank of New Zealand monetary policy announcement
