? Yuan appreciates as Chinese central bank apparently intervenes.
? European stocks up after Germany avoids government failure.
? Mixed trading session in Asia.
? S&P 500 set to open higher.
European equity markets rose, helped by a deal on migration to save Germany's coalition government, following a mixed performance in Asia. The dollar slipped against major currencies and China's currency suffered one of its worst intraday falls on record. U.S. yields were stable, with futures pointing to the S&P 500 opening 0.42% higher.
The Euro Stoxx 50 jumped 1.30% and the FTSE 100 was up 0.59% before 7 a.m. ET, after German Chancellor Angela Merkel struck a deal with Interior Minister Horst Seehofer over immigration, averting the potential collapse of the coalition government. Germany's DAX index added 1.31%, with Commerzbank AG and Deutsche Bank AG's shares jumping 1.07% and 1.43%, respectively. Earlier in Asia, the Shanghai Composite rose 0.41%, while Hong Kong's Hang Seng index fell 1.41%, as China prepared to levy 25% tariffs on U.S. auto imports on July 6.
Société Générale SA, which agreed to buy Commerzbank's equity markets and commodities unit, rose nearly 1%.
Glencore PLC plunged 10.54% as the U.S. Department of Justice subpoenaed its subsidiary Glencore Ltd. to provide documents over its business dealings in Nigeria, the Democratic Republic of the Congo and Venezuela, beginning in 2007 to the present.
The yuan was down 0.8% against the U.S. dollar in early trading but strengthened 0.26% against the dollar as of 7:15 a.m. ET, after state banks were said to aggressively buy the currency. The governor of the People's Bank of China said he was paying close attention to fluctuations in the yuan and would work to stabilize the exchange rate.
The euro appreciated 0.10% against the dollar and the German Bunds fell as 10-year yields rose by 1 basis point to 0.314%.
"The U.S.-eurozone macro and rate divergence story looks set to stay in place this week — which should be keeping a lid on the [euro/dollar] rally," strategists at ING Research said.
Sterling rose 0.33% against the dollar as U.K. construction activity climbed to a seven-month high in June.
The Swedish krona appreciated 1.2% against the euro as of 7:37 a.m. ET after the Sveriges Riksbank left its repo rate unchanged at negative 0.50% and said it expects to start raising interest rates toward the end of the year. The Australian dollar gained 0.71% against the dollar after the country's central bank held its key rate steady at 1.5%.
The Turkish lira depreciated 1.16% as annual inflation jumped to 15.4% in June from 12.2% in May.
"We do not think that the dollar will begin to fall back against other majors until 2019, when we forecast that slower growth in the U.S. economy will bring the Fed's tightening cycle to an end, causing Treasury yields to fall sharply," Capital Economics' Oliver Jones said in a research note. "And even then, another increase in risk aversion might see the dollar continue to rise against EM currencies."
Ten-year Treasury yields were up more than 1 basis point to 2.883% as of 7:18 a.m. ET. Recent economic data has shown that companies and business are increasingly concerned about trade tariffs. The Treasury market will focus on the minutes from the Federal Reserve's June meeting and nonfarm payrolls on July 5 and July 6, TD Securities noted. U.S. President Donald Trump said July 2 that "we'll be doing something" if the World Trade Organization continues to treat the U.S. unfairly.
Brent crude oil gained 1.00% to $78.07 per barrel on the ICE Futures Exchange. Gold rose 0.52% to $1,248.10 per ounce.
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The day ahead:
U.S. motor vehicle sales (Econoday consensus: 17.0 million, domestic)
8:55 a.m. ET — U.S. Redbook
10 a.m. ET — U.S. factory orders (Econoday consensus: 0% monthly)
8:30 p.m. ET — Japan PMI composite
9 p.m. ET — China general services PMI