(Bloomberg) -- European shares ceded earlier gains in low-volume trading as some of the optimism around China’s property market stimulus ebbed. 

Europe’s Stoxx 600 gauge closed little-changed after rising as much as 0.8% earlier. The consumer, travel and leisure and mining shares — sectors with exposure to China — advanced. US markets are shut for the Labor Day holiday and futures for the S&P 500 index were flat. 

With Wall Street shuttered, European trading volumes were below their thirty-day average by almost a third, according to data compiled by Bloomberg. Danish drugmaker Novo Nordisk A/S rose to a new record high, having just become Europe’s most valuable firm. Carmaker Mercedes Benz Group AG added 1% after unveiling a new, longer-range electric vehicle.

Expectations of crude supply cuts from the OPEC+ group kept oil futures near nine-month highs. 

Markets got a boost from a US jobs report on Friday that showed a steadily cooling labor market, offering the Federal Reserve room to pause rate increases this month. Sentiment improved further after news of a weekend surge in home sales in two of China’s biggest cities, an early sign that government efforts to cushion a record housing slowdown is helping. 

Shanghai and Beijing are seen benefiting the most from authorities’ announcement on Thursday that lowered down-payment thresholds across the nation. The Hang Seng index jumped more than 3% Monday before paring gains, while a Bloomberg gauge of Chinese developers jumped as much as 8.7%.

“We have been looking for more significant property rescue measures for some time to shore up sentiment and consumer confidence,” UBS Global Wealth Management Chief Investment Officer Mark Haefele said. “This now appears to be materializing in a more convincing way.” 

WTI crude oil was up about 0.5% at $85.9 per barrel after surging last week on Russia’s announcement that it will extend export curbs. Saudi Arabia — which along with Moscow sets the tone at the OPEC+ alliance — is widely expected by traders to follow suit by pushing its voluntary curbs into October. 

Some investors are convinced the Fed won’t hike rates further this cycle, bets that were reinforced after last week’s jobs data. At the same time, this year’s US stock market rally is strong enough to withstand another leg higher for bond yields, according to the latest Markets Live Pulse survey.

“The incoming data supports our view of a ‘softish’ landing for the US economy,” Haefele said. 

While Treasury markets were closed, bond yields inched higher in the euro zone, with rate-setters seemingly divided on whether policy needs to be tightened further this month, given above-forecast inflation and sluggish growth. In a speech in London, European Central Bank President Christine Lagarde avoided signaling whether policymakers will raise or hold interest rates next week. 

Central banks in Australia and Canada are expected to keep interest rates unchanged this week. 

Key events this week:

• Labor Day holiday in US and Canada, Monday
• ECB President Christine Lagarde makes speech at seminar organized by the European Economics & Financial Center, Monday
• Australia current account, rate decision, Tuesday
• Japan household spending, Tuesday
• China Caixin services PMI, Tuesday
• Eurozone S&P Global Eurozone Services PMI, PPI, Tuesday
• US factory orders, Tuesday
• ECB President Christine Lagarde chairs panel focused on central banks and international sanctions at ECB Legal Conference, Tuesday
• Australia GDP, Wednesday
• Eurozone retail sales, Wednesday
• Germany factory orders, Wednesday
• US trade, Wednesday
• Canada rate decision, Wednesday
• Bank of England Governor Andrew Bailey testifies to the UK parliament’s Treasury Select Committee, Wednesday
• Federal Reserve issues Beige Book economic survey, Wednesday
• Boston Fed President Susan Collins speaks on the economy at New England Council, Wednesday
• China trade, forex reserves, Thursday
• Eurozone GDP, Thursday
• US initial jobless claims, Thursday
• Bank of Canada Governor Tiff Macklem to speak on the Economic Progress Report, Thursday
• New York Fed President John Williams participates in moderated discussion at the Bloomberg Market Forum, Thursday
• Atlanta Fed President Raphael Bostic speaks on economic outlook at Broward College, Thursday
• Japan GDP, Friday
• France industrial production, Friday
• Germany CPI, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 4:20 p.m. New York time
• Futures on the Dow Jones Industrial Average fell 0.2%
• The MSCI World index rose 0.1% to the highest since Aug. 8
• Nasdaq 100 futures were little changed
• The MSCI Asia Pacific Index rose 1.1%, climbing for the sixth straight day, the longest winning streak since July 31
• The MSCI Emerging Markets Index rose 1%

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro rose 0.1% to $1.0794
• The British pound rose 0.3% to $1.2629
• The Japanese yen fell 0.2% to 146.49 per dollar
• The offshore yuan fell 0.1% to 7.2783 per dollar
• The Mexican peso fell 0.5% to 17.1756
• The Brazilian real strengthened 0.2% o 4.9377

Cryptocurrencies

• Bitcoin fell 0.6% to $25,892.68
• Ether fell 0.7% to $1,630.84

Bonds

• The yield on 10-year Treasuries was little changed at 4.18%
• Germany’s 10-year yield advanced three basis points to 2.58%
• Britain’s 10-year yield advanced three basis points to 4.46%

Commodities

• West Texas Intermediate crude rose 0.5%, climbing for the eighth straight day, the longest winning streak since June 16, 2021
• Gold futures fell 0.1% to $1,964.20 an ounce

This story was produced with the assistance of Bloomberg Automation.

--With assistance from John Cheng and Tassia Sipahutar.

©2023 Bloomberg L.P.