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Stock futures gain as trade talks loom; Treasury yields rise before Fed minutes

US imposes visa ban on Chinese officials ahead of talks.

➤ Fed to expand balance sheet, but purchases will not be quantitative easing.

White Houses refuses to cooperate with impeachment probe.

➤ EU reportedly willing to make major concession on Brexit.

U.S. stock futures rose along with European bourses while the dollar slipped as markets assessed recent trade headlines in the run-up to high-level discussions in Washington, D.C., tomorrow.

Futures on the S&P 500 rose 0.8% as of about 7 a.m. ET following two days of declines, while Nasdaq 100 futures jumped 1%.

The U.S. slapped visa restrictions on Chinese officials tied to alleged Muslim abuse in Xinjiang province, a day after it added 28 Chinese entities to a trade blacklist, in moves that drew criticisms from Beijing. The U.S. was also reportedly mulling potential restrictions on portfolio inflows into China, particularly on investments by U.S. government retirement funds.

China said it remained open to a partial trade deal despite the blacklist, although President Donald Trump said in the past that he prefers a whole agreement to a limited pact. China has offered to buy an extra $3.25 billion of U.S. goods in an attempt to ease tensions ahead of two-day talks that are scheduled to begin Oct. 10, the Financial Times reported, citing unnamed negotiators.

Planned tariff increases on $250 billion of Chinese imports are set to kick in Oct. 15.

"While [a trade deal] would be supportive of market sentiment, it would do little to change the macro scenario, with businesses likely having built in persistent uncertainty to trade policy into their baseline outlooks," ABN AMRO analysts, led by financial markets research head Nick Kounis, wrote in a note. "As such, we expect the trade war to continue weighing on global trade and manufacturing, in turn keeping a lid on investment and growth below trend."

The looming trade talks also come on the heels of impeachment proceedings facing the Trump administration, with the White House saying Oct. 8 that it would not cooperate with the probe.

In Europe, the FTSE 100 climbed 0.5%, Germany's DAX rose 1% and France's CAC 40 gained 0.7%.

Trading was mixed in Asia as the Shanghai SE Composite advanced 0.4%, while Japan's Nikkei 225 declined 0.6% and Hong Kong's Hang Seng lost 0.8%.

Sterling was little changed at $1.2224 amid a report that the EU was willing to make a major concession on a Brexit pact after talks between U.K. Prime Minister Boris Johnson and German Chancellor Angela Merkel hit an impasse. The bloc will consider a potential delay to Brexit until June 2020 when EU leaders meet next week.

The euro strengthened 0.2% to $1.0981 and the Japanese yen weakened 0.3% to 107.370.

The Dollar Index dropped 0.1%, while the 10-year Treasury yield rose 2 basis points to 1.55% ahead of the release of the U.S. Federal Open Market Committee's September minutes.

The Fed will soon expand its balance sheet to alleviate volatility in short-term money markets, though the gradual purchases of Treasury securities will not amount to quantitative easing.

The yield on German bunds due in a decade added 3 basis points to negative 0.57%.

In commodities, Brent crude oil rose 0.9% to $58.78 per barrel on the ICE Futures Exchange. The U.S. Energy Information Administration lowered its crude oil price outlook through 2020 as signs of slowing global economic growth outweigh risks to global oil supplies.

COMEX gold futures gained 0.3% to $1,507.8 per ounce.

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The day ahead:

10 a.m. ET — U.S. job openings and labor turnover survey (Econoday consensus: 7.186 million)

10 a.m. ET — U.S. wholesale trade (Econoday consensus: 0.4% month over month)

10:30 a.m. ET — U.S. EIA petroleum status report

11 a.m. ET — U.S. Fed's Jerome Powell speaks

11 a.m. ET — U.S Fed's Esther George speaks

2 p.m. ET — U.S. FOMC minutes

7:50 p.m. ET — Japan machine orders (Econoday consensus: -2.5% month over month)