Futures Slip as Stocks Climb in Europe; Oil Wavers: Markets Wrap
(Bloomberg) — U.S. futures slipped as traders await data on August retail sales and initial jobless claims for cues on the Federal Reserve’s plans to taper stimulus. Stocks rose in Europe, while the dollar and Treasuries ticked higher.
Contracts on the S&P 500 edged lower after posting the biggest jump since August on Wednesday. Casino stocks with operations in Macau extended declines in premarket trading amid the government’s tightening grip on the gambling hub. Miners were weighed down by declines in iron ore and most base metals.
Meanwhile, travel and leisure companies led gains in Europe’s Stoxx 600 Index as Ryanair Holdings Plc lifted its growth target. Energy companies also advanced as crude oil fluctuated near a six-week high.
Gas and power prices pared losses in Europe as supply concerns remain ahead of the winter season and worries grow that costs will pressure profit margins for companies. The world is facing high energy prices for the foreseeable future, Chevron Corp.’s top executive said in a Bloomberg interview on Wednesday.
Investors continue to assess the outlook for economic reopening amid the delta virus strain outbreak and rising costs fueled by higher commodity prices and pandemic-related supply snarls. The United Nations said the global economy is expected to undergo its fastest recovery in almost five decades this year, but warned about deepening inequities between advanced and developing nations.
“For as long as Covid-19 remains a threat, economies will require policy support,” said Nema Ramkhelawan-Bhana, a strategist at Rand Merchant Bank in Johannesburg. “The point of contention is U.S. tapering and whether a reduction in the Fed’s balance sheet is being actively priced. The optimism inherent in the S&P 500 has not permeated other markets.”
While global economic expansion remains above trend, it’s past peak levels and a “deceleration” phase of the market cycle has begun, characterized in part by slowing earnings growth, T.Rowe price said in its global asset allocation report.
Shares fell in Asia, where the debt crisis at China Evergrande Group and Beijing’s latest push to rein in private industries hurt sentiment. Technology stocks slid as China slowed approvals for video games to enforce stricter criteria for content.
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Futures on the S&P 500 fell 0.1% as of 6:18 a.m. New York timeFutures on the Nasdaq 100 fell 0.2%Futures on the Dow Jones Industrial Average were little changedThe Stoxx Europe 600 rose 0.7%The MSCI World index rose 0.3%
The Bloomberg Dollar Spot Index rose 0.2%The euro fell 0.4% to $1.1770The British pound fell 0.1% to $1.3820The Japanese yen was little changed at 109.40 per dollar
The yield on 10-year Treasuries advanced one basis point to 1.31%Germany’s 10-year yield was little changed at -0.31%Britain’s 10-year yield advanced two basis points to 0.79%
West Texas Intermediate crude was little changedGold futures fell 0.9% to $1,779 an ounce
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