US futures rise; traders on edge over war in Ukraine

Bloomberg

US stock-index futures advanced as investors eyed cheaper valuations even as they remained concerned about global growth amid a raging war in Ukraine and an impending rate-hike cycle at the Federal Reserve.
Contracts on the S&P 500 and Nasdaq 100 indexes added 0.5% each, after swinging between gains and losses at least six times. Europe’s Stoxx 600 gauge was boosted by travel and commoidty companies. The dollar headed for the longest streak of weekly increases since November. DocuSign Inc slumped in New York premarket trading after its revenue forecast missed analysts’ estimates.
Volatility continues to whipsaw global markets as a worsening war in Ukraine boosts inflation and threatens to sink global growth. Investors are tottering between panic selling and dip-buying of beaten-down assets as they brace for an anticipated rate increase by the Fed next week. If the European Central Bank’s decisions Thursday are any guide, policy makers may prioritise inflation fight over the need to support economic recovery.
“Global markets seem set to end with a solid defensive bid,” said Simon Ballard, the chief economist at FAB Global Markets in Abu Dhabi.
“Markets are also nervous ahead of what the Federal Open Market Committee might say. We see a not-insignificant risk of stagflation being triggered by a front-loaded, hawkish approach to monetary policy.”
Europe’s Stoxx 600 rose for only the second time, led by companies that benefit from price growth and central-bank tightening, such as commodity companies and banks.
Trading in Asia reflected overnight losses in the US market. An MSCI Inc gauge of the region’s stocks capped its fourth consecutive weekly decline. A technology gauge in Hong Kong slumped more than 6% after the US identified five Chinese firms that could be delisted. Chinese stocks traded in the US had their worst day since 2008 amid renewed regulatory concerns.
US President Joe Biden is expected to call for an end to normal trade relations with Russia, clearing the way for increased tariffs on the country’s imports.
DocuSign plunged 18% in early New York trading after the electronic-signature company forecast revenue for the first quarter that fell short of the average analyst estimate.
The dollar rose, capping its third week of gains. Bitcoin edged lower, trading just above $39,000 apiece.
The Stoxx Europe 600 rose 1.1% in London. Futures on the S&P 500 rose 0.4%. Futures on the Nasdaq 100 rose 0.5%. Futures on the Dow Jones Industrial Average rose 0.4%. The MSCI Asia Pacific Index fell 1.7%. The MSCI Emerging Markets Index fell 1.1%.
The Bloomberg Dollar Spot Index rose 0.2%. The euro was little changed at $1.0981. The Japanese yen fell 0.6% to 116.85 per dollar. The offshore yuan fell 0.3% to 6.3477 per dollar. The British pound was little changed at $1.3085.
The yield on 10-year Treasuries was little changed at 1.98%. Germany’s 10-year yield declined one basis point to 0.26%. Britain’s 10-year yield was little changed at 1.52%.
Brent crude rose 3.3% to $112.94 a barrel. Spot gold fell 0.2% to $1,992.32 an ounce.