The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
US futures rose with European stocks as positive earnings boosted sentiment, while Asian equities were weaker amid Chinese market turbulence. Treasuries fell ahead of the Federal Reserve’s rate decision.
Contracts on the Nasdaq 100 Index and the S&P 500 rose, with Alphabet Inc and Microsoft Corp gaining in premarket after their sales topped estimates. Apple Inc dropped 0.9% on concern over slower growth. European shares climbed, buoyed by Barclays Plc and Gucci owner Kering SA after their results, while a gauge of Asia-Pacific shares fell to its lowest this year.
Strong earnings are helping to keep market jitters at bay, after this week’s China selloff added to investor worries about the threat to global growth from the delta variant and the potential for tighter policy. Treasuries fell, reversing earlier gains, ahead of Wednesday’s Fed decision, at which officials are expected to discuss how and when to taper stimulus.
“Investors appear to be grappling with the diverging risks of a slowing of the global economy, due to rising infection rates, against the risks of rising prices,†said Michael Hewson, chief market analyst at CMC Markets. While the Fed meeting is “unlikely to change the overall narrative when it comes to the timing of a taper,†it may offer an insight into whether the recent hawkishness from Fed officials such as James Bullard and Raphael Bostic is starting to spread to other members, he added.
Elsewhere, West Texas Intermediate crude oil was trading above $72 a barrel and Bitcoin again climbed above $40,000, continuing a recent recovery.
In China, equities swung between gains and losses amid the state media’s efforts to reassure investors about the country’s regulatory crackdown. The Hang Seng Index reversed losses after being on the verge of a bear market.
The Stoxx Europe 600 rose 0.4% as of 10:13 am in London. Futures on the S&P 500 rose 0.2%. Futures on the Nasdaq 100 rose 0.3%. Futures on the Dow Jones Industrial Average were little changed. The MSCI Asia Pacific Index fell 0.2%. The MSCI Emerging Markets Index rose 0.6%.
The Bloomberg Dollar Spot Index was little changed. The euro was little changed at $1.1823.
The Japanese yen fell 0.2% to 109.95 per dollar. The offshore yuan rose 0.3% to 6.5065 per dollar. The British pound was little changed at $1.3887.
The yield on 10-year Treasuries advanced two basis points to 1.26%. Germany’s 10-year yield was little changed at -0.44%. Britain’s 10-year yield was little changed at 0.57%. Brent crude rose 1% to $75.21 a barrel. Spot gold rose 0.1% to $1,801.56 an ounce.