Stocks Ready for Mixed Start as Traders Reflect on Growth: Markets Shroud

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(Bloomberg) – Stocks looked set for a mixed start on Monday as traders wait for earnings season and assess the risks of a pandemic recovery from inflationary pressures and an energy crisis. The dollar has changed little.

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Equity futures slipped for Japan, held steady for Australia and earlier reported gains in Hong Kong. US contracts fell after the S&P 500 and the Nasdaq 100 fell on Friday following US job growth data that fell significantly below expectations while also showing increased profits.

Treasuries fell after the report, pushing the 10-year yield past 1.6%. Wage gains and rising energy costs highlight pricing pressures that add to the case for tighter monetary policy. Many strategists expect the Federal Reserve to cut bond purchases in the coming weeks. There are no cash treasury bills traded on Monday due to a public holiday in the United States.

West Texas Intermediate crude was trading at its highest level since 2014. The New Zealand dollar fell due to the increase in Covid-19 cases in that country.

In the UK, Bank of England officials have stepped up signals of an impending UK interest rate hike to curb inflation. In addition to the central bank tightening, investors are also gearing up for upcoming third-quarter corporate earnings reports and monitoring debt problems and the slowdown in China’s real estate sector.

“The reduction is on track for November,” Simon Ballard, chief economist at First Abu Dhabi Bank, told Bloomberg Television. When it comes to the Fed’s rate hikes, the jobs report emphasizes “later rather than sooner.”

Economists at Goldman Sachs Group Inc. have downgraded their growth forecasts for the United States this year and next, lagging behind the recovery in consumer spending. The declines were largely offset by improvements in their projections for the next two years.

Elsewhere, tension over Taiwan is brewing. President Tsai Ing-Wen said the island faces “unprecedented challenges” and will defend its sovereignty, pushing back after Chinese leader Xi Jinping said a day earlier that unification would be achieved. Taiwanese markets are closed for a public holiday.

In cryptocurrencies, Bitcoin declined slightly to trade around $ 55,000.

For more market analysis, read our MLIV blog.

Some of the main movements in the markets:

Actions

  • S&P 500 futures fell 0.3% at 7.48am in Tokyo. The S&P 500 fell 0.2%

  • Futures on the Nasdaq 100 lost 0.4%. The Nasdaq 100 fell 0.5%

  • Nikkei 225 futures fell 0.4%

  • Australian S & P / ASX 200 index futures were little changed

  • Hang Seng index futures rose 0.8% earlier

Currencies

  • The Japanese yen was at 112.29 per dollar

  • The offshore yuan was trading at 6.4448 to the dollar

  • The Bloomberg Dollar Spot Index changed little

  • The euro was at $ 1.1571

Obligations

Merchandise

  • West Texas Intermediate crude rose 0.7% to $ 79.88 a barrel

  • Gold was at $ 1,754.05 an ounce, down 0.2%

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