➤ U.K. lawmakers reject new snap election bid.
➤ Germany reportedly mulls "shadow budget."
➤ U.S. stock futures track losses in Europe; Asian shares mixed.
➤ Oil gains as Saudi official hints at output curb extension.
U.S. stock futures followed European bourses into the red as Asian equities traded mixed ahead of the European Central Bank's crucial meeting this week. Oil advanced after a Saudi official signaled his desire to retain output curbs.
Futures on the S&P 500 and the Nasdaq 100 were both 0.2% lower at about 7 a.m. ET.
European stocks also declined, with the FTSE 100 losing 0.2% and France's CAC 40 falling 0.5%. The DAX was less than 0.1% lowert, while the wider Stoxx Europe 600 slid 0.3%.
The ECB is widely expected to introduce a stimulus package this week that is likely to include a resumption of its bond-purchase program amid mounting economic uncertainties.
"Ultimately, the market reaction will depend on the ECB's credibility, willingness and commitment to do 'whatever it takes' and, in our view, sending these signals is more important than the exact design of the measures," wrote Danske Bank analysts led by Arne Lohmann Rasmussen, chief analyst and head of fixed income research.
Trading was mixed in Asia, with the Shanghai SE Composite dipping 0.1%, Japan's Nikkei 225 up 0.4% and Hong Kong's Hang Seng ending the session flat.
China's producer prices fell at the sharpest rate in three years in August, while consumer inflation held steady, reports today showed.
Treasury Secretary Steven Mnuchin said the U.S. and China have made "a lot of progress" in talks and that both sides have a "conceptual" agreement on enforcement areas, but warned that the steep tariffs imposed on Chinese goods will remain unless a deal is reached.
In the bond market, yields on 10-year German Bunds gained 1 basis point to negative 0.58%, while those on 30-year government debt added 1 basis points to 0.00%.
Germany was reportedly mulling a "shadow budget" to boost investment in certain industries without running afoul of the country's debt rules. Separately, a German official said the government could review its plan to run a balanced budget through 2023 if needed due to economic conditions or external factors.
"While we remain sceptical that significant fiscal stimulus is imminent, the reports have contributed to the near-term sell-off in fixed-income markets," said Lee Hardman, currency analyst at MUFG Bank.
Ten-year Treasury yields fell 1 basis point to 1.63%.
In currencies, sterling trimmed earlier losses after the U.K.'s annual wage growth topped estimates in August as Bank of England policymakers watched for clues on inflationary pressures. This came after U.K. lawmakers rejected Prime Minister Boris Johnson's second attempt to launch a snap election next month.
The British pound was down 0.1% to $1.2339. The euro also lost 0.1%, to $1.1036 and the Japanese yen weakened 0.1% to 107.39 per dollar.
The Dollar Index, which measures the U.S. currency's performance against a basket of majors, gained 0.2% 98.4320.
Brent crude oil climbed 0.6% higher to $62.95 per barrel on the ICE Futures Exchange after Saudi Arabia's new energy minister yesterday signaled that a deal reached between the OPEC and its allies to curb oil production will remain.
The OPEC is due to release its monthly market report tomorrow.
Gold spot fell 0.3% to $1,494.32 per ounce.
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US SEC will no longer rule or publish findings on some shareholder resolutions
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Fannie, Freddie shares jump 27% following court victory for shareholders
The day ahead:
8:55 a.m. ET — U.S. Redbook
10 a.m. ET — U.S. Job Openings and Labor Turnover Survey (Econoday consensus: 7.311 million)
