(Bloomberg) – European stocks rose while US stock futures drifted on Wednesday as the scramble between economic optimism and inflation worries continues in the markets. The dollar was ticking.
The Stoxx Europe 600 Index climbed 0.3%, with energy stocks boosted by rising commodity prices. The contracts on the S&P 500 and Nasdaq 100 were little changed. Hong Kong and China stocks fell, while Japanese stocks outperformed and robust economic data boosted Australian stocks.
Oil extended gains after closing at its highest level since October 2018, with OPEC + delivering a positive demand view and diminishing the prospect of an early return of Iranian barrels. The Turkish lira fell to a record low against the greenback after President Recep Tayyip Erdogan again called for lower interest rates. Little changes were made to government bonds.
As economies continue to recover from the pandemic, traders are looking for new signals as to whether this growth is translating into inflation, which ultimately causes central banks to withdraw support. All eyes are on Friday’s US payroll data for a clearer view of the state of the labor market – and clues as to whether the Federal Reserve is likely to scale back its monthly security purchases.
Fed Governor Lael Brainard said Tuesday there were risks on both sides of monetary policy as the US economy advances while millions of people are unemployed.
“Investors would see a surge in salary growth as a sign that the Fed is more likely to move,” said Lauren Goodwin, portfolio strategist at New York Life Investments.
Here are the main events to watch this week:
Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan will speak on Wednesday Employment report for May on Friday
These are some of the key steps in the markets:
The Stoxx Europe 600 rose 0.3% at 8:17 a.m. London time. Futures on the S&P 500 were little changedFutures on the Nasdaq 100 were little changedFutures on the Dow Jones Industrial Average were little changedThe MSCI Asia Pacific Index was little changedThe MSCI Emerging Markets Index fell 0.4%
The Bloomberg Dollar Spot Index rose 0.1% The euro was unchanged at $ 1.2206 The Japanese yen fell 0.2% to 109.75 per dollar The offshore yuan fell 0.1% to 6.3896 per dollar That British pound remained little changed at 1.4141 USD
The yield on 10-year government bonds remained unchanged at 1.60%. Germany’s 10-year yield fell 1 basis point to -0.19% Great Britain’s 10-year yield fell 1 basis point to 0.82%
Brent crude rose 0.7% to $ 71 per barrel.Spot gold has barely changed
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