European stocks rise as futures drift; dollar gains

Bloomberg

European stocks rise while US equity futures drifted on Wednesday as the tussle between economic optimism and inflation concern continues to play out in markets. The dollar ticked up.
The Stoxx Europe 600 Index climbed 0.2%, with energy shares getting a boost from oil prices at multi-year highs. Contracts on the S&P 500 and Nasdaq 100 gauges fluctuated. AMC Entertainment Holdings Inc extended gains in pre-market trading after earlier raising $230.5 million in a stock sale to Mudrick
Capital Management.
Oil advanced after closing at the highest since October 2018, with Opec+ providing an upbeat demand assessment and the prospect of a speedy return of Iranian barrels waning. Treasuries were little changed.
As economies continue to claw their way back from the pandemic, traders are looking for fresh signals on whether that growth translates into inflation that ultimately prompts central banks to withdraw support. Up next is US payrolls data, which will provide a clearer view of the state of the labour market — and hints on whether the Federal Reserve is likely to scale back its monthly asset purchases.
Fed Governor Lael Brainard said there are risks on both sides of monetary policy as the US economy surges ahead while millions of people are unemployed.
“Investors would see a surge in payrolls growth as a sign that the Fed is more likely to move,” said Lauren Goodwin, portfolio strategist at New York Life Investments.
Elsewhere, shares in Hong Kong and China retreated, while Japanese stocks outperformed and robust economic figures boosted Australian
equities.
The Stoxx Europe 600 rise 0.2% as of 10:11 am London time and futures on the S&P 500 were little changed.
While futures on the Nasdaq 100 fall 0.1%, futures on the Dow Jones Industrial Average were little changed and the MSCI Asia Pacific Index was little changed. The MSCI Emerging Markets Index falls as much as 0.3%.
While the Bloomberg Dollar Spot Index rises 0.2%, the euro falls 0.2% to $1.2184 and the Japanese yen drops 0.3% to 109.86 per dollar.
The offshore yuan was little changed at 6.3847 per dollar and the British pound sinks 0.1% to $1.4134.
The yield on 10-year Treasuries was little changed at 1.61% and Germany’s 10-year yield was little changed at -0.19%. Britain’s 10-year yield was little changed at 0.82%
While Brent crude rises 0.8% to $71 a barrel, spot gold falls 0.2% to $1,896 an ounce.