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US stock futures fluctuate as China rejects Trump claims of trade talks

China rejects Trump's claims of exchange of calls between 2 countries.

German Q2 GDP contraction confirmed at 0.1%.

➤ Italy's 5-Star demands Democratic Party to back Conte as coalition leader.

➤ Trump halts new auto tariffs on Japan.

U.S. equities futures swung between gains and losses, following declines in Europe, as market optimism waned after China rejected claims of an exchange of calls with the U.S.

China's foreign ministry said it is not aware of calls made to Washington after U.S. President Donald Trump claimed "numerous calls" were exchanged between the two countries over the past two days. Beijing said it hoped the U.S. creates "conditions for consultations."

Germany's Federal Statistical Office confirmed a 0.1% economic contraction in the second quarter amid the sharpest export decline in six years.

"Given lingering uncertainty about whether and how China will go ahead with more retaliation and the unpredictability of the [U.S.] reaction, it seems that caution is warranted on any risk-positive news," wrote analysts at ING Research.

S&P 500 index futures were almost flat at about 7 a.m. ET, while Nasdaq 100 futures added 0.1%. The benchmark stock indexes closed 1.1% and 1.5% higher, respectively, on Aug. 26.

In Europe, the FTSE 100 index fell 0.3%, France's CAC 40 rose 0.1% and Germany's DAX gained 0.3%.

In Asia, the Shanghai SE Composite advanced 1.4% as data showed Chinese industrial profits rebounded in July. Japan's Nikkei 225 rose nearly 1% with Subaru Corp. and Suzuki Motor Corp. adding 4.9% and 2.6%, respectively, as Trump said the U.S. would not impose new tariffs on auto imports from Japan "at this moment." Hong Kong's Hang Seng ticked 0.1% lower at market close.

The Dollar Index, which measures the U.S. currency against a basket of developed-market peers, was down 0.2% to 97.9020 ahead of the release of August's consumer confidence data reading, due at 10 a.m. ET. Sterling climbed 0.4% to $1.2262 and the Japanese yen strengthened 0.3% to 105.8500 per dollar.

The euro was little changed at $1.1105.

Yield on 10-year Treasurys fell 3 basis points to 1.51%, while the rate on German bunds lost 1 basis point to negative 0.68%.

Italian 10-year note yields shed 7 basis points to 1.25%, the lowest level since October 2016, as as the Five-Star Movement and possible coalition partner Democratic Party wrangled over the makeup of any government, with reports that Five Star will not reconvene talks unless the Democratic Party backs departing Prime Minister Giuseppe Conte to lead any combined entity.

In commodities, Brent crude rose 0.6% to $59.32 per barrel on the ICE Futures Exchange. Gold spot climbed 0.2% to $1,530.56 per ounce.

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The day ahead:

8:55 a.m. ET – U.S. Redbook

9 a.m. ET – U.S. S&P Corelogic Case-Shiller HPI (Econoday consensus: 0.2% monthly seasonally adjusted)

9 a.m. ET – U.S. FHFA House Price Index (Econoday consensus: 0.3% monthly)

10 a.m. ET – U.S. Conference Board consumer confidence index (Econoday consensus: 129.8)

10 a.m. ET – U.S. Richmond Fed manufacturing index (Econoday consensus: Minus 4)