Stocks Steady, U.S. Futures Dip; Oil Holds Gain: Markets Wrap

Stocks Steady, U.S. Futures Dip; Oil Holds Gain: Markets Wrap
Andreea Papuc
·3 min read

(Bloomberg) -- Asian stocks were steady Monday after their U.S. peers climbed toward a record, aided by a jobs report that eased fears about the economy running too hot and stoking troublesome inflation. Oil held an advance.

Shares fluctuated in small ranges in Japan, China and Australia. They fell in Hong Kong. U.S. equity contracts were slightly lower. The S&P 500 rose and the dollar fell with Treasury yields Friday, after a report showed U.S. job growth picked up in May but missed estimates. The dollar held the drop, while yields ticked upward.

Investors continue to assess whether price pressures will lead central banks to pare stimulus earlier than generally expected. Treasury Secretary Janet Yellen said President Joe Biden should push forward with his spending plans even if they trigger inflation that persists into next year, adding a “slightly higher” interest rate environment would be a “plus.”

WTI crude oil in New York touched $70 a barrel for the first time since October 2018. Bitcoin traded around $36,000 after declining over the weekend amid a cryptocurrency crackdown in China.

Speculation continues that the U.S. recovery from the pandemic may be strong enough to prompt Federal Reserve discussions in the weeks ahead on tapering asset purchases. Traders are looking ahead to the U.S. consumer-price index report this week for more clues.

“The slightly softer-than-expected rise in U.S. payroll employment in May probably won’t change the Fed’s thinking, but another pickup in CPI inflation likely to be reported on Thursday will further spur the taper talk,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, wrote in a note.

Elsewhere, the Group of Seven rich nations secured a landmark deal that could help countries collect more taxes from big firms and enable governments to impose levies on U.S. tech giants such as Amazon.com Inc. and Facebook Inc.

For market commentary, follow the MLIV blog.

Here are key events to watch this week:

Apple holds its annual Worldwide Developers Conference (WWDC) virtually for a second year, to announce new hardware and software and work with developers. Through June 11.European Central Bank decision on Thursday and press conference with President Christine Lagarde.Iran nuclear deal talks reconvene in Vienna Thursday.U.S. consumer price index on Thursday.Group of Seven leaders’ summit starts in Cornwall, England Friday.

These are some of the main moves in markets:

Stocks

S&P 500 futures dipped 0.1% as of 10:30 a.m. in Tokyo. The index rose 0.9% FridayNasdaq 100 futures fell 0.2%. The gauge climbed 1.8%Japan’s Topix index rose 0.1%Australia’s S&P/ASX 200 Index fell 0.1%South Korea’s Kospi index added 0.1%Hong Kong’s Hang Seng Index fell 0.6%China’s Shanghai Composite Index edged up 0.1%

Currencies

The yen was at 109.53 per dollarThe offshore yuan was at 6.3897 per dollarThe Bloomberg Dollar Spot Index was stable after falling 0.5% FridayThe euro was at $1.2172

Bonds

The yield on 10-year Treasuries rose about one basis point to 1.57%Australia’s 10-year bond yield fell six basis points to 1.63%

Commodities

West Texas Intermediate crude added 0.2% to $69.80 a barrelGold was at $1,891.57 an ounce

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