Futures followed stocks lower on Monday as investors prepared for a flood of profits amid doubts about an uneven economic recovery.
U.S. equities futures fell after the third consecutive week of gains and new S&P 500 index records. Contracts on the Russell 2000 index were insufficient. In Europe, retailers and travel companies caused declines in the Stoxx Europe 600 index.
The 10-year Treasury yield remained stable ahead of a round of auctions that will be widely monitored for its potential to extend the rate hike that has shaken commodity stocks to emerging markets this year. The U.S. sells three-, ten- and thirty-year-old treasury earlier in the week.
China led the recovery trade; Now almost everyone is prudent
Although the U.S. recovery is accelerating, economies continue to be at risk of increasing Covid-19 cases and vaccination setbacks. The turnaround to cyclical and small-cap stocks appears to have stalled as well, prompting concern about the strong economic return at the start of the earnings season.
“The breakdown of small caps and cyclicals is a possible early warning sign that real reopening of the economy will be harder than dreaming of,” Morgan Stanley strategist Mike Wilson wrote in a note of the customer.
Oil fell and Bitcoin rose above $ 60,000, not far from its all-time high. The next cryptocurrency exchange list Coinbase Global Inc. in the United States it has once again put the focus on the digital token sector.
Elsewhere, traders will be on the lookout for any further escalation between Russia and Ukraine, after Russia warned that growing violence in Ukraine could trigger a wider military conflict.
Some key events to watch this week:
- Banks and financial companies are starting to report first-quarter earnings, inclusive JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc.
- U.S. officials and business executives will have to debate the world lack of computer chips Monday.
- The US released inflation data on Tuesday.
- Chinese trade data is forecast for Tuesday.
- The Washington Economic Club hosts Jerome Powell, Fed Chairman, for moderated questions and answers on Wednesday.
- The U.S. Federal Reserve publishes Beige Book on Wednesday.
- U.S. data, including initial claims for unemployment, industrial production and retail sales, arrive Thursday.
- China’s economic growth, industrial production and retail sales figures are Friday.
These are some of the main movements in the financial markets:
Stocks
- S&P 500 index futures fell 0.1% at 10:42 a.m. London time.
- The Stoxx Europe 600 index sank 0.3%.
- The MSCI Asia Pacific Index fell 0.7%.
- The MSCI Emerging Market Index fell 1%.
Coins
- The Spot Bloomberg Dollar index fell 0.1%.
- The euro rose 0.1% to $ 1,1907.
- The British pound advanced 0.3% to $ 1.3742.
- The land yuan strengthened 0.1% to $ 6,547.
- The Japanese yen was up 0.3% to $ 109.33.
Good
- The ten-year Treasury yield fell less than one basis point to 1.66%.
- The two-year Treasury yield rose less than one basis point to 0.15%.
- Germany’s ten-year yield fell one basis point to -0.32%.
- Japan’s ten-year yield fell less than a basis point to 0.108%.
- The UK’s ten-year yield advanced one basis point to 0.781%.
Commodities
- West Texas crude oil rose 0.4% to $ 59.56 a barrel.
- Brent crude gained 0.6% to $ 63.31 a barrel.
- Gold weakened 0.1% to $ 1,742.42 an ounce.
– With the assistance of Ishika Mookerjee