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Bloomberg
US equity futures and stocks posted modest gains on Monday as investors prepared for a key Federal Reserve meeting later in the week. The rally in Treasuries appeared to lose steam.
S&P 500 futures signaled the gauge was poised to add to the fresh record. European equities opened higher, led by shares in energy firms. The benchmark 10-year yield inched up to around 1.46% after hitting three-month lows amid the biggest weekly slide since
December.
With anxiety about the Fed’s plans to scale back monthly stimulus injections ebbing, bulls are reasserting their dominance. Investors anticipate the central bank will reaffirm the pace of bond purchases this week, even if it delivers projections for interest-rate liftoff in 2023, according to economists surveyed by Bloomberg. The decision is due on Wednesday.
“The FOMC continues to see the jump in inflation as transitory, and may acknowledge, even at the margin, that they are discussing the pace of monthly purchases but won’t yet commit to a date for slowing the purchases,†said
Prudential Financial Inc strategist Quincy Krosby in emailed comments.
Oil extended a run of three weekly gains on optimism that economic reopenings will boost summer demand in the US and Europe. Hedge funds boosted net-bullish positions to a nearly three-year high, according to the latest Commodity Futures Trading Commission data.
The dollar was steady in the wake of a Group-of-Seven leadership meeting that emphasised unity. Meanwhile, Bitcoin jumped over the weekend after Elon Musk said Tesla would resume transactions with the cryptocurrency when mining is done with more clean energy.
Futures on the S&P 500 Index increased 0.1% as of 9:02 am London time and the Stoxx Europe 600 Index rises 0.3%.
While the MSCI Asia Pacific Index was little changed, the MSCI Emerging Market Index declined as much as 0.1%
The Bloomberg Dollar Spot Index was little changed and the euro rises 0.1% to $1.2116.
While the British pound declined 0.1% to $1.4099, the onshore yuan weakened 0.1% to 6.399 per dollar and the Japanese yen was little changed at 109.69 per dollar.
The yield on 10-year Treasuries jumped one basis point to 1.46% and the yield on two-year Treasuries climbed less than one basis point to 0.15%.
While Germany’s 10-year yield gained less than one basis point to -0.27%. Japan’s 10-year yield gained one basis point to 0.041% and Britain’s 10-year yield increased less than one basis point to 0.711%.
West Texas Intermediate crude climbed 0.8% to $71.45 a barrel and Brent crude increased 0.9% to $73.34 a barrel. Gold weakened 1% to $1,858.74 an ounce.