Stocks Mixed Ahead of U.S. Midterms; Dollar Rises: Markets Wrap

U.S. equity futures fluctuated and European stocks rose as investors looked ahead to the American elections this week, with a trade deal between the world’s biggest economies seemingly off the table for now. Treasuries edged higher and the dollar climbed, while the pound strengthened amid signs the U.K. and European Union are closer to breaking the Brexit deadlock.

Futures on the Dow, S&P 500 and Nasdaq drifted, while telecom and healthcare companies pushed the Stoxx Europe 600 Index higher in relatively thin trading. Shares in Asia slid following Friday’s rally and after White House economic adviser Larry Kudlow downplayed the potential for a quick deal between the U.S. and China. The dollar climbed against most of its major peers, with the pound standing its ground on signs of further progress in Brexit negotiations.

Politics and central banks loom large in a busy week for global markets. U.S. congressional elections, seen as a referendum on the policies of President Donald Trump, take place Tuesday. On the Brexit front, Prime Minister Theresa May is due to discuss the latest proposals with her cabinet the same day. Investors then turn their eyes to the Fed’s policy meeting. Though officials are expected to keep the benchmark rate unchanged at their penultimate 2018 meeting Thursday, clues will be sought for moves into 2019.

Elsewhere, crude was on track for a sixth day of declines even as sanctions on Iran oil snapped back into place Monday. Emerging-market currencies and shares fell.