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? Dollar slips ahead of Fed minutes.
? European stocks edge up after muted trading in Asia.
? Italy's bonds, stocks gain.
? Emerging market currencies recover.
? S&P 500 set to open higher.
European stock markets edged higher after muted trading in Asia, with the S&P 500 due to open 0.94% higher amid U.S.-China trade optimism. Italian bonds and stocks rose as the country inched closer to forming a populist coalition government. The dollar fell and Treasury yields ticked up as the market awaited Fed minutes later in the week.
The Euro Stoxx 50 gained 0.14% while the FTSE 100 added 0.23%. Earlier in the day, China slashed import tariffs on vehicles and auto parts in a bid to further open up its market, as trade tensions between the U.S. and China appeared to be easing. The U.S. and China are said to have also agreed on a "broad outline" to lift a U.S. ban on Chinese telecommunications firm ZTE Corp.
China stocks were little changed and Japan's Nikkei 225 slipped 0.18%. Markets in South Korea and Hong Kong were closed.
The 10-year yield on U.S. Treasurys increased by more than 1 basis point to 3.077% as of 7:02 a.m. ET.
The euro and yen picked up against the dollar, rising 0.19% and 0.06%, respectively, around 7 a.m. ET. Sterling rose 0.22% after the Bank of England's Gertjan Vlieghe said rates were likely to rise by between 25 to 50 basis points per year over a three-year period.
The Federal Reserve's minutes from the May monetary policy meeting due out tomorrow will probably contain "dovish undertones" and could challenge the dollar's recent appreciation, TD Securities wrote.
Italian bonds gained, with yields on the government's 10-year debt shedding over 11 basis points to 2.301% as President Sergio Mattarella was expected to appoint the populists' nominee Giuseppe Conte as prime minister. Ten-year yields on safe haven German Bunds climbed over 4 basis points to 0.568%. The FTSE MIB gained 0.37% in Milan.
However, the appointment of Conte has raised concerns that he will be unable to make decisions on his own, given that the real power will lie with League's Matteo Salvini and Five Star's Luigi Di Maio, Michael Hewson, chief market analyst at CMC Markets UK, said. Conte may face a dilemma if the two party heads are not on the same page.
Emerging markets assets staged a recovery, with the Mexican peso up 0.27% and the South African rand 0.71% higher against the dollar, partly in reaction to easing global trade tensions and a stabilization in U.S. Treasury yields, ING Research said. The Turkish lira reversed earlier gains and was down 0.70% around 7:04 a.m. ET.
"The vulnerable [emerging market] currencies with material idiosyncratic issues continue to underperform and show only shallow pace of rebound," ING said.
Brent crude rose 0.48% on the ICE Futures Exchange to $79.60 per barrel as the U.S. warned of the "strongest sanctions in history" if Iran fails to meet Washington's demands.
Gold reversed early losses, rising 0.22% to $1,293.70 per ounce.
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US, China agree to mend trade relationship after threats
US issues new sanctions against Venezuela, criticizes election
Right-to-try experimental drugs bill on verge of becoming law
Cooperation across the globe to accelerate new era of 5G
Electric vehicle outlook clouded by cobalt, infrastructure concerns
UK grocery delivery company Ocado seen facing challenges in the US market
NextEra pays premium for Florida expansion in deal for Southern assets
Trend of declining IPOs starting to reverse in Clayton's first year at SEC
UK insurance broker M&A spree surges on despite headwinds
Fifth Third-MB Financial deal boosts values of other Chicago-area banks
The day ahead:
8:55 a.m. ET — U.S. Redbook
10 a.m. ET — Richmond Fed manufacturing index (Econoday consensus: 10)
8:30 p.m. ET — Japan PMI manufacturing index flash

