Stocks and futures performance ahead of key US inflation data

S&P 500 and Nasdaq 100 futures edged up slightly after Monday, when both indicators were in the red. The Stoxx Europe 600 fell about 0.6%, with declines in automakers and insurers offsetting gains in retailers. MSCI Inc. stock index added less than 0.5%, due to the recovery of shares of Chinese technology companies.

Treasuries have been solid and the bulk of the yield curve remains inverted, signaling a recession to come. The 10-year yield was 12.4 basis points below the 2-year bond at one point on Tuesday. Most European bonds rose.

Brent crude consolidated at around $100 a barrel after falling. The dollar is holding near the highest levels since March 2020. The euro remained within parity with the US dollar. The British pound rose after it was announced that politicians are ready to increase the cost of borrowing in larger steps to curb inflation. The price of Bitcoin was above $19 000.

The rapid tightening of monetary policy in the US and other countries to combat price pressures increases concerns about economic growth. South Korea and New Zealand also raised interest rates.

 

Learn how to earn on changing markets with Forex Fundamental analysis

 

U.S. inflation is likely to peak in June, forcing the Federal Reserve to brace for another big rate hike, according to experts.

The International Monetary Agency said that a widespread surge in inflation creates systemic risks for both the country and the global economy.

Traders are also waiting for the latest corporate reports to be released this week and are keeping an eye on the energy crisis in Europe if Russia cuts off gas supplies due to the consequences of its invasion of Ukraine.

Some of the key metrics:

Stocks

Stoxx Europe 600 down 0.6%

S&P 500 futures up 0.1%

Nasdaq 100 futures up 0.3%

Futures for the Dow Jones Industrial Average remained virtually unchanged

The MSCI Asia Pacific Index rose 0.3%.

The MSCI Emerging Markets Index rose 0.5%.

Currencies

The euro fell 0.1% to $1.0026.

The Japanese yen fell 0.2% to $137.14 per dollar.

The offshore yuan rose 0.1% to 6.7259 per dollar.

The British pound rose 0.2% to $1.1916.

Bonds

The yield on 10-year Treasuries remained almost unchanged at 2.96%.

The yield on German 10-year bonds rose two basis points to 1.15%.

The yield on British 10-year bonds rose by four basis points to 2.12%.

Commodities

Brent crude rose 1.2% to $100.68 a barrel.

Spot gold changed little