Europe stocks advance as futures drift; oil rebounds

Bloomberg

European stocks rose to a record on strong earnings, while US futures drifted as investors continued to monitor comments from Federal Reserve officials on scaling back stimulus measures.
The Stoxx 600 Index climbed for a seventh day, with Flutter Entertainment Plc leading gains after the gambling company beat profit estimates. US equity futures were little changed, while stocks rose in Japan, which reopened after a holiday, as well as in Hong Kong and China.
Crude oil bounced back from a three-week low on bets that the global demand recovery will remain intact despite the fast-spreading delta virus variant. Treasuries were little changed with the dollar. Gold was steady after the volatility and Bitcoin traded back around $46,000.
Remarks from Atlanta Fed President Raphael Bostic added to the mix of commentary and economic indicators traders are parsing for clues on the Fed’s next move. With stocks at or near records on the back of extraordinary stimulus measures, Bostic said that another strong month or two of employment gains should prompt the central bank to taper its asset purchases, and that the Fed should move faster than in past episodes.
Cleveland Fed President Loretta Mester will discuss inflation risks at a virtual event today. US price data later this week will also be closely watched after the jobs report fanned expectations that unwinding will start soon.
At the same time, the spread of the highly contagious delta in corners of the world has raised concern the recovery from the pandemic will be derailed. New coronavirus cases in the US surged to the highest weekly level since early February, while deaths increased the most since December.
“Risks remain,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “While inflation data
has so far not been a major
market mover, Wednesday’s July consumer price index release
has the potential to cause volatility, especially given
expectations that inflation has passed the peak.”
Cleveland Fed President Loretta Mester; Kansas City Fed President Esther George among Fed speakers through the week. The US consumer price index on Wednesday is forecast to show prices increased again in July. OPEC Monthly Oil Market Report due on Thursday.
The Stoxx Europe 600 rose 0.2% in London. Futures on the S&P 500 were little changed. Futures on the Nasdaq 100 were little changed. Futures on the Dow Jones Industrial Average were little changed. The MSCI Asia Pacific Index rose 0.1%. The MSCI Emerging Markets Index rose 0.1%.
The Bloomberg Dollar Spot Index was little changed. The euro was little changed at $1.1734. The Japanese yen fell 0.2% to 110.49 per dollar.
The offshore yuan was little changed at 6.4861 per dollar. The British pound rose 0.1% to $1.3862.
The yield on 10-year Treasuries was little changed at 1.33%. Germany’s 10-year yield advanced one basis point to
-0.45%. Britain’s 10-year yield advanced one basis point to 0.59%. Brent crude rose 1.3% to $69.97 a barrel. Spot gold was little changed.