Stocks struggle, US futures slip; oil rises

Bloomberg

Stocks in Europe struggled for traction and US index futures slipped as traders weighed the latest developments in the Ukraine war, with some European governments pushing for stiffer sanctions on Russia amid reports that its troops executed unarmed civilians.
The Stoxx Europe 600 index fluctuated at the open, with banks and car makers leading declines. The healthcare sector outperformed as Roche Holding AG climbed after the US Food and Drug Administration (FDA) gave a priority review for its Covid-19 drug Roactemra. Futures on the S&P 500 and Nasdaq 100 slipped. Futures on the S&P 500 and Nasdaq 100 edged lower.
Treasuries dipped on the prospect of sharp Fed interest-rate hikes to fight inflation. WTI crude oil climbed above $100 a barrel as traders weighed threats to demand from China’s Covid outbreak and moves to tap strategic reserves to enhance supply and curb elevated energy costs.
The Treasury yield curve is flashing more warnings that economic growth will slow as the Fed raises rates to tame inflation stoked in part by commodities. The two-year US yield has exceeded the 30-year for the first time since 2007, joining inversions on other parts of the curve.
The Fed minutes later this week will shape views on the odds of a half percentage-point rate increase in May and provide key details on how the central bank will shrink its balance sheet.
New York Fed President John Williams said a “sequence of steps” can get rates back to more normal levels. Mary Daly, president of the San Francisco Fed, said rising inflation and a tight labour market strengthen the case for a half-point May hike.
Chinese tech shares in Hong Kong climbed over 4% after Beijing sought to modify a rule that restricts offshore-listed firms from sharing sensitive financial data with foreign regulators. That may allow the US to gain full access to audits, reducing the risk of Chinese firms losing Wall Street listings.
The Stoxx Europe 600 was little changed as of 8:22 am London time and futures on the S&P 500 drop 0.1%.
While futures on the Nasdaq 100 fall 0.1%, futures on the Dow Jones Industrial Average also slumped 0.1%. The MSCI Asia Pacific Index rises 0.8% and the MSCI Emerging Markets Index also climbs 1%.
The Bloomberg Dollar Spot Index was little changed and the euro was also little changed at $1.1035.
The Japanese yen was little changed at 122.58 per dollar and the offshore yuan was also little changed at 6.3718 per dollar. The British pound rises 0.1% to $1.3128.