By Margaryta Kirakosian

(Bloomberg) -- Europe’s Stoxx 600 index headed for its best month in two years as strong earnings reports burnished the appeal of the region’s stocks over pricier Wall Street equities. The dollar gained ahead of President Donald Trump’s weekend tariff announcement.

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The European benchmark was up 0.4%, set for a 6.5% jump in January. Nasdaq 100 futures advanced 0.8% and contracts on the S&P 500 climbed. Apple Inc. and Intel Corp. rose more than 2% in premarket trading at the end of a volatile week for tech.

With Trump poised to unleash his first wave of tariffs on Canada and Mexico on Saturday, a gauge of dollar strength was set for its best week since mid-November. Treasuries fell on bets the potential levies could spur inflation and keep interest rates high, while implied volatility for the Canadian dollar and Mexican peso suggested wild swings ahead.

“It is possible that Trump goes ahead with the 25% announcement for Mexico and Canada, which would be market negative,” said Mohit Kumar, chief economist at Jefferies International Limited. “However, we still view tariffs as a negotiating tool.”

Commodity markets are pricing in elevated odds that crucial raw materials like oil will be included in sanctions against Canadian imports, Goldman Sachs Group Inc. said. Crude swung between gains and losses.

With the threat of tariffs very much alive, investors will be watching the latest core price index data from the US, the Fed’s preferred inflation gauge, which is expected to a slight pickup in December.

Meanwhile, reports from some of the largest technology companies in the US have proved resilient enough to shake off concern about rising competition. Big tech earnings have been front and center all week after Chinese startup DeepSeek shook up markets with its cheaper AI model.

The 26 Nasdaq-100 members due to report this season have delivered an almost 6% surprise on earnings — above the previous two seasons’ much thinner results.

In commodities, gold was steady after touching a record high to trade around $2,795 per ounce Friday. It’s on track for the best month since March as Trump’s tariff threats, and the danger of a trade war, spur haven demand for the precious metal.

Gold Hits Record High as Trump Tariff Threats Aid Haven Demand

Key events this week:

• US personal income & spending, PCE inflation, employment cost index, Friday

Some of the main moves in markets:

Stocks

• The Stoxx Europe 600 rose 0.4% as of 10:39 a.m. London time

• S&P 500 futures rose 0.4%

• Nasdaq 100 futures rose 0.7%

• Futures on the Dow Jones Industrial Average rose 0.3%

• The MSCI Asia Pacific Index was little changed

• The MSCI Emerging Markets Index fell 0.2%

Currencies

• The Bloomberg Dollar Spot Index rose 0.2%

• The euro fell 0.1% to $1.0378

• The Japanese yen fell 0.3% to 154.70 per dollar

• The offshore yuan was little changed at 7.3006 per dollar

• The British pound was little changed at $1.2420

Cryptocurrencies

• Bitcoin fell 0.8% to $104,203.54

• Ether rose 0.5% to $3,261.51

Bonds

• The yield on 10-year Treasuries advanced two basis points to 4.53%

• Germany’s 10-year yield declined four basis points to 2.48%

• Britain’s 10-year yield was little changed at 4.56%

Commodities

• Brent crude fell 0.1% to $76.79 a barrel

• Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

--With assistance from Richard Henderson and Chiranjivi Chakraborty.

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