(Bloomberg) — Asian stocks rose and U.S. futures extended overnight gains amid optimism about progress on stimulus talks in Washington. Treasuries and the dollar retreated.Shares climbed in Japan, Hong Kong and South Korea, and fluctuated in Australia. S&P 500 contracts edged higher after House Speaker Nancy Pelosi said she remains hopeful of a deal before the election. The gauge bounced back from Monday’s selloff on Tuesday. Tech shares mostly shook off the U.S. Justice Department’s decision to sue Google for allegedly abusing its power. Netflix Inc. plunged in late trading after it missed Wall Street estimates.Elsewhere, Treasuries continued to decline, with the 10-year yield rising above 0.8%. Oil slipped. The yuan climbed to the strongest since July 2018 and copper hit its highest in more than two years. In the latest developments, Pelosi said Tuesday she’s hopeful for a stimulus agreement this week, which would be bigger, better and retroactive. Still, Senate Majority Leader Mitch McConnell has warned the White House against a bigger Pelosi-led deal before Nov. 3. The administration’s offer is now $1.88 trillion, White House Chief of Staff Mark Meadows said on CNBC. Pelosi has pushed for $2.2 trillion along with a number of requirements for how the money should be deployed.A rally built on stimulus hopes has investors weighing the chances of striking a deal against speculation that the looming election will prove too much of a hurdle to overcome. Yet with Federal Reserve policy makers urging for more fiscal support to complement unprecedented monetary aid, many in the market may be willing to let Pelosi’s deadline come and go.Federal Reserve Bank of Chicago President Charles Evans said Tuesday the prospect of Congress failing to deliver additional fiscal support made him nervous, though he was “somewhat optimistic” about next year’s recovery.“Equity markets are under some pressure following limited advances in stimulus talks,” Sebastien Galy, a senior macro strategist at Nordea Investment Funds SA, said in a note. “The odds of a deal being low, tells us much about the battle between hope and the reality of an economy still under severe shock but recovering.”Amid a resurgence in coronavirus cases, European Central Bank President Christine Lagarde said the unexpectedly early pickup in infections is a “clear risk” to the economic outlook in the region. Europe’s leaders have intensified efforts to slow the contagion, reviving lockdowns in some areas after piecemeal curbs made little impact. New cases hit daily records in Germany and the Netherlands.Here are some key events this week:Brexit trade talks are likely to continue at least into next week if the U.K. and EU fail to reach an agreement.The final presidential debate before the U.S. election, between President Donald Trump and former Vice President Joe Biden, will be live from Nashville, Tennessee on Thursday.Here are some of the main market moves:StocksS&P 500 futures rose 0.5% as of 11:23 a.m. in Tokyo. The S&P 500 Index gained 0.5%.Topix index rose 0.9%.Australia’s S&P/ASX 200 Index rose 0.2%.South Korea’s Kospi index rose 0.3%.Hong Kong’s Hang Seng Index rose 0.8%.Shanghai Composite Index fell 0.4%.Euro Stoxx 50 futures rose 0.1%.CurrenciesThe yen rose 0.1% to 105.40 per dollar.The offshore yuan traded at 6.6587 per dollar, up 0.1%. The onshore yuan gained as much as 0.16% to 6.6664 a dollar in early trading in Shanghai.The Bloomberg Dollar Spot Index dipped 0.2%.The euro was at $1.1833, up 0.1%.The British pound rose 0.1% to $1.2963.BondsThe yield on 10-year Treasuries increased more than two basis points to 0.81%.Australia’s 10-year bond yield rose more than three basis points to 0.79%.CommoditiesWest Texas Intermediate crude fell 0.6% to $41.44 a barrel.Gold added 0.4% to $1,913.76 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Source link