U.S. index futures rallied alongside European and Asian stocks as traders cheered a reduction in political tension from Italy and Britain to Hong Kong. Treasuries and gold retreated, while the dollar slipped. Contracts on the three major U.S. equity gauges jumped, signaling stocks will rebound from Tuesday’s declines. All 19 industry groups in the Stoxx Europe 600 index advanced, almost erasing the gauges August’s decline as luxury-good makers including LVMH and Richemont advanced. Markets outperformed in Italy, where a new political coalition was taking shape that may be more conciliatory toward the European Union. Shares in Hong Kong surged the most since 2018, buoying equities across Asia, after embattled leader Carrie Lam said she formally withdrew legislation to allow extraditions to China, the detonator for three months of often-violent protests. In the U.K., the pound strengthened along with stocks after Parliament took a crucial first step to block a no-deal Brexit. The euro advanced and most European bonds fell. Hong Kong shares jump, with property subgauge up most since 2015. Traders are rushing back into riskier assets as event risks seem to be receding, from a possible Chinese crackdown in Hong Kong to a confrontation between the European Union and two of its biggest members. At the same time, investors remain on the alert for any news on China-U.S. trade talks, with officials from both countries struggling to agree on the next step after Washington rejected Beijing’s request to delay tariffs that took effect over the weekend. Hong Kong's Carrie Lam to Formally Withdraw Extradition Bill, SCMP Says. Hong Kong’s embattled leader, Carrie Lam, plans to formally withdraw a controversial bill that would have allowed extraditions to China, the South China Morning Post reported on Wednesday, citing unidentified sources. Bloomberg’s Stephen Engle reports on “Bloomberg. Elsewhere, oil ticked higher and the onshore yuan rose after a stronger-than forecast daily currency fixing. In the U.S., with Florida orange groves seemingly escaping major damage from Hurricane Dorian, concern now turns to soy, corn and cotton fields as well as livestock in Georgia and the Carolinas as the storm churns northward. Here are some key events coming up: Bank of England Governor Mark Carney speaks before Treasury Committee on Wednesday alongside colleagues Andy Haldane, Jonathan Haskel and Gertjan Vlieghe, on the bank’s August Inflation Report; he’ll then appear alone to discuss the U.K.’s economic relationship with the EU. Fed speakers this week include New York Fed’s John Williams on Wednesday and Fed chair Jerome Powell on Friday. The U.S. jobs report on Friday is projected to show the widely watched nonfarm payrolls rose by 160,000 in August, versus 164,000 the month prior. Estimates are for unemployment to be steady at 3.7% and the average hourly earnings rate of increase to slow to 3.0%.