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? Trade in focus ahead of G-7 summit.
? Euro gains as Italy set to formalize government.
? European stocks rise, following Asian gains.
? S&P 500 set to open higher.
Global stocks rose as a better-than-expected U.S. jobs report provided continued momentum to equity investors, but the dollar slipped amid intensifying global trade tensions ahead of a two-day G-7 summit starting June 8. Brent crude sank 1.43% and futures pointed to the S&P 500 opening 0.33% higher.
The Euro Stoxx 50 rose 0.55% by 7:06 a.m. ET and the FTSE 100 was up 0.72%. Earlier in Asia, the Shanghai Composite closed 0.52% higher as China warned it would abandon any trade deals if the U.S. implemented tariffs. Hong Kong's Hang Seng index jumped 1.63% and Japan shares rose 1.37%.
Ten-year U.S. Treasury yields rose 5 basis points to 2.916% after the June 1 jobs report reinforced expectations of a rate hike later in the month by the Federal Reserve.
"There wasn't a lot to dislike about the latest U.S. payrolls report but again it was one of those reports that while strong didn't quell those concerns about lackluster wages growth," said Michael Hewson, chief market analyst at CMC Markets U.K.
The Fed is likely to hike two more times after June in 2018, although policymakers will be keeping an eye on global trade tensions, ING said in a research note, adding that President Donald Trump's metal tariffs could impact jobs numbers over coming months.
Canada, France, Germany, Italy, Japan and the U.K. adopted a formal statement June 2 expressing their "unanimous concern and disappointment" over Washington's new steel and aluminum tariffs. The European Union said it will not return to negotiations with the U.S. as the bloc opened a case at the World Trade Organization and began formulating retaliatory measures.
Political worries in Italy eased, boosting demand for the country's sovereign debt, with 10-year yields shedding 15 basis points to 2.543% as a coalition populist government looks set to be ratified later June 4. The FTSE MIB was up 0.37%.
The new government's policies, which include boosting spending and tax cuts, are nonetheless likely to bring it into direct confrontation with the northern states of the European Union, Hewson wrote.
The euro strengthened 0.6% against the dollar. With stabilization in Italian politics, the Eurozone risk premium is expected to be less of a negative driver for the currency, which may take support from upcoming domestic economic data, according to ING.
"The market is still trading according to shifts in politics and trade, although the payrolls bump brought macro back to the fore," TD Securities said. "The big surprise is how the theme has shifted to become [euro] positive and [dollar] negative."
Sterling gained 0.26% against the U.S. currency, which was little changed against the yen ahead of data on factory orders, which were expected to decline month over month.
Brent crude declined 1.12% to $75.93 per barrel on the ICE Futures Exchange.
The Turkish lira gained 0.40% against the dollar as annual inflation accelerated to 12.15% in May from 10.85% in April, adding further pressure on the central bank to raise rates this week, the Financial Times reported. The central bank recently hiked its liquidity window interest rate by 300 basis points to 16.5% to curb a deep sell-off in the currency.
Gold was little changed at $1,299.00 per ounce.
More from S&P Global Market Intelligence:
More than $23B of US exports face retaliation for steel, aluminum tariffs
Structured deposits in China tumble into a 'regulatory grey area'
Draft DOE memo lays out plan to prop up vulnerable coal, nuclear power plants
Panel sees peril for power markets from state policies, federal intervention
ASCO conference: Lung cancer looms large as doctors review latest research
Deutsche's stock hurt by 'overdone' fears of Lehman-like failure
Jamie Dimon: 'You have a golden age of banking'
Capitol Checkup: FDA drug review revamp; cancer pilots; right-to-try claims
The day ahead:
10:00 a.m. ET — U.S. factory orders (Econoday consensus: -0.4% monthly)
12:30 p.m. ET — TD Ameritrade IMX
7:30 p.m. ET — Japan household spending (Econoday consensus: 0.9% yearly)
8:30 p.m. ET — Japan PMI composite
9:00 p.m. ET — China general services PMI

