(Bloomberg) – Asian stocks were stable and US stock futures fell Monday as traders weighed inflation risks and Janet Yellen’s comments on higher interest rates. Ten-year US Treasury bond yields rose and the dollar rose.
Shares rose in Japan and fell in Hong Kong, while the S&P 500, Nasdaq 100 and European contracts were in the red. Treasury Secretary Yellen said President Joe Biden should move his spending plans forward even if they trigger inflation that lasts into next year, adding that a “slightly higher” interest rate environment would be a “plus”.
Investors continue to judge whether price pressures will cause central banks to remove incentives sooner than expected. The S&P 500 rose towards a record high on Friday on a job report that showed an increase in hiring but fell short of estimates, suggesting continued scope for political support.
Meanwhile, the Group of Seven Wealthy Nations secured a landmark deal that could help countries collect more taxes from big corporations and allow governments to collect royalties from U.S. tech giants like Amazon.com Inc. and Facebook Inc.
Speculation continues that the US recovery from the pandemic may be strong enough to spark Federal Reserve discussions on reducing bond purchases in the coming weeks. Traders are looking for further clues on Thursday’s US consumer price index report.
“The slightly weaker-than-expected increase in US employment in May is unlikely to change the Fed’s mindset, but a further spike in CPI inflation, expected to be reported Thursday, will further fuel talks about a cut,” Shane Oliver said , Head of Investment Strategy and Chief Economist at AMP Capital, wrote in a note.
Trade data from China showed that exports continued to rise in May, albeit at a slower pace than the previous month, driven by strong global demand.
Oil in New York hit $ 70 a barrel for the first time since October 2018 before falling back again. Bitcoin traded at around $ 36,000 after falling amid a cryptocurrency crackdown in China over the weekend.
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Here are the top events to watch this week:
Apple holds its annual Worldwide Developers Conference (WWDC) virtually for the second year to announce new hardware and software and to collaborate with developers. By June 11, decision of the European Central Bank on Thursday and press conference with President Christine Lagarde. Iran nuclear deal will resume on Thursday in Vienna. Consumer price index on Thursday. The Group of Seven Leaders Summit begins on Friday in Cornwall, England.
These are some of the key moves in the markets:
S&P 500 futures fell 0.2% at 7:15 a.m. in London. The index rose 0.9% FridayNasdaq 100 futures fell 0.2%. The value rose 1.8% Japan’s Topix index remained little changed, Australia’s S & P / ASX 200 index fell 0.2% South Korea’s Kospi index rose 0.4% Hong Kong’s Hang Seng index fell 0.6%, China’s Shanghai Composite index remained stable: Euro Stoxx 50 futures were down 0.1%
The yen was at 109.48 a dollar, the offshore yuan was at 6.3966 a dollar, down 0.1% The Bloomberg Dollar Spot Index rose less than 0.1% The euro was at $ 1.2160
10-year government bond yields rose about two basis points to 1.57% Australia’s 10-year bond yields fell five basis points to 1.64%
West Texas Intermediate Crude Oil was down 0.6% to $ 69.20 an ounce, Gold was at $ 1,884.24 an ounce, down 0.4%
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