Premarket: Europe’s stocks eke out gains

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Markets see modest gains as traders aim for the first three-session run of back-to-back gains since August

Europe’s markets looked to put a testing third quarter behind them on Monday, with both stocks and the euro ticking sideways, bond markets steady and a last-minuteA fractional 0.2% move higher from the pan-European STOXX 600 in the face of some difficult data gave traders early hope the region could score its first three-session run of back-to-back gains since mid-August.

Markets in China, Hong Kong and India had been closed for holidays but Tokyo’s open-for-business Nikkei jumped as much as 1.7% as the yen dribbled back towards 150-per-dollar, a weakness viewed as a boon for Japan’s exporters. The eleventh-hour deal to avoid a U.S. government shutdown, struck over the weekend, lifted U.S. stock futures by 0.5% in Europe.

As well as the gains in Europe, 10-year Japanese government bond yields rose by a basis point to their highest for a decade at 0.775%. The Bank of Japan said it will buy bonds with 5-10 years to maturity on Wednesday, with the size of purchases to be announced then. Futures bounced on the news.

 

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