Gain in US futures; Stable dollar and treasury bills: markets envelop
(Bloomberg) – U.S. stock index futures gained as investors bet the Federal Reserve would maintain monetary support in the months to come, as a rebound in the world’s largest economy stokes fears of inflation.
Contracts on the S&P 500 and Nasdaq 100 gauges showed gains after the mixed close in US stocks on Friday. The dollar and treasury bills were stable. Bitcoin advanced above $ 35,000 after another weekend of big swings. The Stoxx Europe 600 struggled against a backdrop of low volumes, with the German, Danish, Norwegian and Swiss markets closed for the holidays.
China’s crackdown on commodity speculation weighed on commodity prices, with steel falling more than 5% and iron ore dropping near the daily limit. Bloomberg’s industrial metals sub-index fell for a fourth day to a one-month low.
Implied volatility in major global indices remains subdued, suggesting investors aren’t expecting a surprise from the Fed in the next six months. While market indicators of inflation expectations have recently declined, fears persist that the post-pandemic recovery could stoke price pressures, and some countries are also facing spikes in Covid-19. Strong corporate earnings, especially in Europe, are supporting stock prices.
“It’s going to be a very mixed market over the next few months until we get more information on what’s really going to happen with inflation and how the stimulus in the US affects spending there, but also how the coronavirus is really progressing, ”JoAnne Feeney a partner at Advisors Capital Management LLC, said in an interview with Bloomberg TV.
Brent climbed above $ 67 a barrel after Iran said gaps remained between parties seeking to revert to the 2015 nuclear deal, which could lead to increased global crude supply .
Here are some events this week:
Consensus by CoinDesk brings together leading crypto voices to discuss NFTs, exchanges and the role of central banks. Fed Governor Lael Brainard and Bridgewater founder Ray Dalio will attend. Until May 27, Bank of Indonesia rate decision Tuesday, Reserve Bank of New Zealand policy decision Wednesday, Bank of Korea rate decision Thursday. , including JPMorgan and Goldman Sachs, will testify before lawmakers in the Senate. Financial Services Commissions Wednesday: Initial U.S. jobless claims, GDP, durable goods, pending home sales, Thursday.
Here are some of the main movements in the markets:
The Stoxx Europe 600 index was little changed at 11 a.m. London time, S&P 500 futures rose 0.5% Nasdaq 100 futures rose 0.7% Dow Jones Industrial Average futures rose 0.4% MSCI Asia Pacific index was little changed fell 0.3%
Bloomberg Dollar Spot Index fell 0.1% Euro rose 0.3% to $ 1.22 13 Japanese yen was little changed at 108.88 per dollar Offshore yuan rose 0, 1% to 6.4276 per dollar The British pound was little changed at $ 1.4136
10-year Treasury yield little changed at 1.62% Germany’s 10-year yield little changed at -0.13% Britain’s 10-year yield little changed at 0 , 82%
Brent rose 1.9% to $ 68 a barrel
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