Stocks and US futures fluctuated ahead of inflation data that could influence expectations about the Federal Reserve’s likely timing for paring stimulus. Treasury yields and the dollar were steady.
Basic-resources shares declined in Europe as iron ore dropped for a fifth day, with production curbs in China weighing on demand and investors awaiting industrial and economic data due this week. Energy stocks gained along with crude oil as another hurricane menaced a key US hub just weeks after Ida hammered local output. Contracts on the S&P 500 edged higher, while those on the Nasdaq 100 were little changed.
The focus is firmly on price pressures, with a gauge of commodities around a decade-high and a report expected to show a fourth month of US inflation at 5% or more. The global stock-market rally is facing headwinds amid concerns about the delta virus strain and risks from elevated inflation, which is being stoked by Covid-19
related supply disruptions.
“Investors don’t want to have massive positions before the inflation data as the risks are to the upside as Covid-19 inflation continues to hamper supply chains,” Edward Moya, a senior market analyst at Oanda, said in a note. “If inflation comes in hotter-than-expected, taper expectations could shift from December to November.”
Japan’s Nikkei 225 Stock Average was set for its highest close since 1990. Hong Kong and China wavered as traders evaluated the troubles of China Evergrande Group, Beijing’s regulatory curbs and a virus flareup.
Indebted developer Evergrande, one of the biggest financial worries in China, said it hired advisers to explore solutions for its cash crunch.
The Stoxx Europe 600 was little changed as of 9:36 am London time and futures on the S&P 500 rise 0.2%.
While futures on the Nasdaq 100 were little changed, futures on the Dow Jones Industrial Average climb 0.2% and the MSCI Asia Pacific Index falls 0.5%. The MSCI Emerging Markets Index also drops 0.6%.
While the Bloomberg Dollar Spot Index was little changed, the euro rises 0.1% to $1.1824 and the Japanese yen was little changed at 110.04 per dollar. The offshore yuan was little changed at 6.4404 per dollar and the British pound rises 0.3% to $1.3873.
The yield on 10-year Treasuries advanced one basis point to 1.34% and Germany’s 10-year yield advanced two basis points to -0.31%. Britain’s 10-year yield advanced three basis points to 0.77%
While Brent crude climbs 0.9% to $74.17 a barrel, spot gold falls 0.2% to $1,790.05 an ounce.