Global Markets Higher on Hopes U.S. Government Will Avoid Shutdown

By Dow Jones Newswires StaffA degree of risk appetite returned at the end of a week marked by volatile trading. The S&P ended down 1.4% on Thursday after more tit-for-tat tariff moves, and Russia rejected a U.S.-brokered plan for a cease-fire in Ukraine.Still, there was optimism that the U.S. could avoid a government shutdown. Early Friday in Europe, U.S. stock futures recovered and bond market volatility calmed. The preliminary Michigan Consumer Sentiment Index for March will be in focus later.S&P stock futures rose 0.7% early in Europe and major equities markets here were slightly up. Bucking the trend was Gucci-owner Kering, as investors reacted to the appointment of a provocative designer as Gucci's artistic director: shares fell over 13%.Chinese shares closed at their highest level this year on Friday amid hopes that Beijing will soon move to shore up the economy. The benchmark Shanghai Composite Index ended up 1.8%, the Hang Seng Index tracked Chinese markets higher, rising 2.1%. Japanese stocks also ended higher as concerns about borrowing costs abated.Bond markets calmed somewhat, although U.S. Treasury and German Bund moves remain out of sync. The 10-year Treasury yield was up 1.3 basis points, with the 10-year Bund yield up just one basis point.Yields on U.K. gilts fell after U.K. GDP data came in weaker than expected, contracting by 0.1% on month. The 10-year gilt yield fell two basis points to last trade at 4.675%. Sterling fell 0.2% to $1.2926 after the data.The dollar edged higher as it recovers from oversold conditions following a selloff since January. The DXY dollar index against a basket of major currencies was up 0.1% to 103.977.Bitcoin was up early in Europe as some degree of risk sentiment returned. It was last up 2.7% to $82,510.Gold futures hit a fresh record on benign U.S. inflation data and safe-haven demand, topping the $3,000 a troy ounce mark.Write to Barcelona Editors at [email protected]