American stock futures dipped, suggesting the rally that drove the S&P 500 to an all-time high may pause as concern China is curtailing loan growth tempered optimism stoked by the US economic rebound.
Contracts on the S&P 500 slipped along with those on the Nasdaq 100 after large US technology stocks rise, including a surge by Facebook Inc. to a new peak. The dollar and Treasury yields were steady. European stocks, meanwhile, rise to a record as markets reopened after Monday’s holiday across the region.
US data continued to highlight an economic pickup as more Americans are vaccinated against the coronavirus, restrictions are rolled back and fiscal relief takes hold. But other parts of the world are still struggling to curb the pandemic and are lagging behind in inoculations. In China, the central bank asked the nation’s major lenders to curtail loan growth for the rest of this year, according to people familiar with the matter.
“It looks like spectacular US data has a few caveats that apply to the ‘tide lifting all boats’ assumption,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “For one, there is a sense that vaccine differentials could just mean an uneven recovery. Worse, it could also mean having to deal with higher US Treasury yields in a more fragile state,” especially for emerging markets, he said.
The Stoxx Europe 600 index erased pandemic-related losses, with cyclicals such as miners, automakers and banks among the biggest gainers. Markets in the region were closed. BP Plc rises more than 3% after saying it may restart share buybacks earlier than expected as it curbed debt.
Credit Suisse Group AG slipped after taking a 4.4 billion franc ($4.7 billion) writedown tied to the implosion of Archegos Capital Management. The bank unloaded about $2.3 billion worth of stocks tied to the family office more than a week after some rivals dumped their shares and skirted losses.
Oil rebounded as expectations of a breakthrough in talks to revive an Iranian nuclear accord were scaled back, reducing the odds that crude flows from the country would pick up further.
S&P 500 futures dipped 0.2% in London. Nasdaq 100 futures fall 0.3% and the Stoxx Europe 600 index advanced 0.8%. While the MSCI Asia-Pacific Index falls 0.3%, MSCI’s Emerging Market Index rises 0.3%.
The Bloomberg Dollar Spot Index was flat and the yen declined 0.1% to 110.32 per dollar.
While the euro was steady at $1.1818, the British pound slipped 0.2% to $1.3878.
The yield on 10-year Treasuries rise one basis point to 1.72% and Germany’s 10-year yield rose three basis points to -0.30%. The UK 10-year yield climbed four basis points to 0.83%. West Texas Intermediate crude rises as much as 1.9% to $59.75 a barrel.
It tumbled 4.6% in the previous session and gold added 0.3% to $1,7232.90 an ounce.