American equity-index futures declined on Thursday ahead of key data on the world’s biggest economy. Treasury yields were steady and the dollar slipped.
Contracts on the S&P 500 and Nasdaq 100 dropped after the underlying indexes gained on Wednesday. Data on jobs, growth and personal consumption later Thursday will help investors piece together a picture of the economy amid concerns about inflation pressures and prospects for monetary stimulus.
The Stoxx Europe 600 Index hovered near a record as gains in miners and travel shares offset losses in health-care and food-and-beverage stocks. Planemaker Airbus SE climbed after telling suppliers it plans to raise output. In Asia, Chinese stocks and currency edged higher after Washington and Beijing held the first trade talks since Joe Biden became president.
The U.S. and China trade chiefs had a “candid” first conversation as they try to resolve differences. At the same time, tensions remain — the White House’s top official for Asia said Wednesday the U.S. is entering a period of intense competition with China.
Global equities have pushed higher in May amid volatile trading as investors swung from worries that higher inflation poses a threat to loose monetary policy to optimism about the economic recovery. Federal Reserve officials have hinted that they may start discussions on reducing bond purchases in upcoming meetings if the economy powers ahead, a move that could push yields higher and damp demand for riskier assets.
“It will be the inflation prints that will be dominating markets,” Janet Mui, investment director at Brewin Dolphin, said on Bloomberg Television. “This year we are at a junction when market participants are thinking about a potential withdrawal of stimulus.”
Elsewhere, oil weakened on concern there will be a glut of Iranian supply if sanctions on the Persian Gulf producer are lifted. Bitcoin held below $40,000. Gold steadied near the highest level in more than four months.
Here are some events this week:
- U.S. initial jobless claims, GDP, durable goods, pending home sales and personal consumption on Thursday.
These are some of the main moves in markets:
- The Stoxx Europe 600 rose 0.1% as of 9:46 a.m. London time
- Futures on the S&P 500 fell 0.2%
- Futures on the Nasdaq 100 fell 0.5%
- The MSCI Asia Pacific Index fell 0.2%
- The MSCI Emerging Markets Index was little changed
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro was little changed at $1.2198
- The Japanese yen was little changed at 109.16 per dollar
- The offshore yuan rose 0.2% to 6.3717 per dollar
- The British pound was little changed at $1.4127
- The yield on 10-year Treasuries advanced one basis point to 1.59%
- Germany’s 10-year yield was little changed at -0.20%
- Britain’s 10-year yield advanced two basis points to 0.77%
- Brent crude fell 0.8% to $68 a barrel
- Spot gold fell 0.1% to $1,894 an ounce