Stocks Mixed, Futures Steady as Treasuries Slip: Markets Wrap

Stocks Mixed, Futures Steady as Treasuries Slip: Markets Wrap
Sunil Jagtiani and Namitha Jagadeesh
·3 min read

(Bloomberg) -- European stocks were steady with U.S. futures, while Asian shares rose at the end of a volatile week. Treasuries fell.

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In Europe, a drop in travel shares offset gains in luxury shares spurred by better-than-forecast earnings from Cartier owner Richemont. Contracts on the S&P 500 were little changed, while those on the Nasdaq 100 ticked higher. Asian shares climbed, helped by rallies in Japan and in China’s technology stocks.

Treasuries resumed a selloff after a trading holiday Thursday as this week’s shock U.S. inflation figures continued to weigh on the market. Five-year notes led losses on concern the price pressure will force the Federal Reserve to raise rates earlier than anticipated. A gauge of the yield curve flattened to the least since March 2020.

The dollar held a rally amid caution triggered by a U.S. warning that Russia may be weighing a potential invasion of Ukraine. Oil, gold and Bitcoin slipped.

While global stocks are set for their first weekly drop since early October, their swings have been muted compared with the gyrations in the bond market. Investor focus on a strong earnings season has tempered worries about higher inflation.

“Inflation could remain elevated in the coming months, and each inflation release that comes in above expectations has the potential to cause volatility in rate and equity markets, but we still don’t expect inflation to derail the equity rally,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note.

Elsewhere, President Xi Jinping delivered the first doctrine on Communist Party history by a Chinese leader in 40 years, giving him a mandate to potentially rule for life. Xi’s “common prosperity” drive to curb inequalities has spawned overhauls that whipsawed sectors from technology to property.

There are tentative hopes the strictures may ease, with Goldman Sachs Group Inc. predicting a brighter outlook for Chinese equities.

Read More: Goldman Predicts Boost for Chinese Stocks From Softer Regulation

For more market analysis, read our MLIV blog.

Stocks

  • The Stoxx Europe 600 was little changed as of 8:40 a.m. London time

  • Futures on the S&P 500 were little changed

  • Futures on the Nasdaq 100 rose 0.2%

  • Futures on the Dow Jones Industrial Average were little changed

  • The MSCI Asia Pacific Index rose 0.8%

  • The MSCI Emerging Markets Index rose 0.4%

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.1445

  • The Japanese yen was little changed at 114.02 per dollar

  • The offshore yuan rose 0.1% to 6.3827 per dollar

  • The British pound rose 0.1% to $1.3391

Bonds

  • The yield on 10-year Treasuries advanced one basis point to 1.56%

  • Germany’s 10-year yield was little changed at -0.23%

  • Britain’s 10-year yield advanced one basis point to 0.93%

Commodities

  • Brent crude fell 0.6% to $82.37 a barrel

  • Spot gold fell 0.4% to $1,854.32 an ounce

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