Stocks, futures steady as China tech rebound stalls

Bloomberg

Stocks and US futures were steady as a rebound in Chinese technology shares stalled and markets settled into a holding pattern ahead of the Federal Reserve’s Jackson Hole policy symposium later this week.
The Stoxx Europe 600 index posted a modest gain at the open, while contracts on the S&P 500 and Nasdaq 100 fluctuated after the indexes reached fresh records. A Hong Kong gauge of Chinese tech names struggled to extend this week’s rally amid lingering concerns about Beijing’s crackdown on private industries. Treasury yields were flat and the dollar edged higher against a basket of major peers.
Company earnings, expanding vaccinations and support from monetary policy have partially repaired sentiment after a bout of jitters over economic prospects caused by the delta strain. The next key read on the central-bank outlook is due later this week when Fed Chairman Jerome Powell speaks at Jackson Hole.
“There is a sense of stabilisation in the markets, as investors are already looking forward toward the Jackson Hole meeting,” said Dariusz Kowalczyk, a senior strategist at Credit Agricole CIB. “With uncertainty regarding Fed Chair Jerome Powell’s message, markets are likely to not take new major positions until there is more clarity on the Fed’s outlook.”
Investors are hoping the Jackson Hole event will provide more clarity on the Fed’s thinking on monetary stimulus amid a takeoff in inflation but still-mixed economic data. This week’s reports from purchasing managers worldwide showed the return of concern about the outlook for growth, with US business activity slowing to the weakest in eight months.
Powell has already initiated formal talks on a path towards pulling back on the central bank’s massive bond buying program, a schedule he may offer more perspective on this week. Most Fed officials last month judged that it likely would be appropriate for the
reductions to start this year.
In commodities, oil retreated after the biggest two-day gain since November with Covid-19 still shadowing assessments of the demand outlook. Iron ore futures extended a rebound from last week’s rout on optimism that China won’t allow steel demand to collapse while its economic prospects remain uncertain.
Meanwhile, US-China tension is back in focus. Securities and Exchange Commission Chair Gary Gensler pledged to enforce a three-year deadline for US-listed Chinese firms to permit inspections of their financial
audits or face delisting.
The Stoxx Europe 600 rises 0.1% as of 8:30 am London time and futures on the S&P 500 were unchanged.
While futures on the Nasdaq 100 were little changed. futures on the Dow Jones Industrial Average were little changed and the MSCI Asia Pacific Index rises 0.1%. The MSCI Emerging Markets Index also rises 0.3%.
The Bloomberg Dollar Spot Index was little changed and the euro falls 0.1% to $1.1744.
The Japanese yen falls 0.1% to 109.77 per dollar and the offshore yuan was little changed at 6.4733 per dollar.
The British pound was little changed at $1.3721.
While the yield on 10-year Treasuries was little changed at 1.29%, Germany’s 10-year yield advanced one basis point to -0.46%. Britain’s 10-year yield advanced two basis points to 0.55%
Brent crude falls 0.1% to $70.97 a barrel. spot gold falls 0.6% to $1,792.74 an ounce.