(Bloomberg) — Stocks in Europe struggled for traction along with U.S. futures after signs China’s economic recovery may be leveling out and as investors continue to weigh global inflation risks.
The Stoxx Europe 600 index fluctuated at the open as Deutsche Bank AG declined after a warning by Federal Reserve that its compliance programs aren’t adequate. Contracts on the S&P 500 and Nasdaq 100 inched higher, with restricted trading hours on Monday due to the Memorial Day holiday in the U.S. There’s no Treasuries cash trading today, after the 10-year yield dropped below 1.60% on Friday. The dollar was steady.
In Asia, Japan underperformed amid concern about an extended state of emergency to curb the coronavirus. Shares fell in Hong Kong and fluctuated in China, where a gauge of the manufacturing industry suggested the economy’s recovery momentum might have peaked.
Global stocks remain near a record, lifted by the ongoing economic recovery from the pandemic and injections of stimulus. The rally has so far weathered concerns that price pressures could force an earlier-than-expected reduction in central bank support. But investors remain sensitive to the risk, and this week’s U.S. non-farm payrolls report could buffet markets if it changes perceptions of the rebound’s strength.
“Policy makers have committed to accepting a higher level of inflation, higher volatility in inflation and as that happens you will see inflation moving structurally higher,” Mixo Das, JPMorgan Asia equity strategist, said on Bloomberg TV. “I don’t think this is in the prices yet.”
The offshore yuan stabilized in the wake of comments leaning against its climb. Two state-run newspapers flagged risks fueled by rapid gains in the currency. China also set its daily reference rate at a weaker-than-expected level.
Bitcoin hovered around $35,000 after a Friday slump as Bank of Japan Governor Haruhiko Kuroda warned about the token’s volatility and speculative trading. Crude oil advanced.
Here are key events to watch this week:
U.S. markets will be closed for the Memorial Day holiday. U.K. markets will be closed for the Spring Bank holidayReserve Bank of Australia policy decision TuesdayOPEC+ meets to review oil production levels TuesdayPhiladelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak WednesdayU.S. employment report for May on Friday
These are some of the main moves in markets:
Stocks
The Stoxx Europe 600 was little changed as of 8:25 a.m. London timeFutures on the Nasdaq 100 rose 0.2%Futures on the S&P 500 rose 0.2%The MSCI Asia Pacific Index rose 0.3%The MSCI Emerging Markets Index rose 1%
Currencies
The Bloomberg Dollar Spot Index was flatThe euro was little changed at $1.2196The Japanese yen rose 0.1% to 109.71 per dollarThe offshore yuan was little changed at 6.3626 per dollarThe British pound was little changed at $1.4182
Bonds
Germany’s 10-year yield advanced three basis points to -0.16%Britain’s 10-year yield declined two basis points to 0.79%
Commodities
Brent crude rose 0.9% to $69 a barrelSpot gold was little changed
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.
