(Bloomberg) – Stocks were flat against US futures on Monday, as commodities slumped as investors weighed concerns about a pullback in stimulus and a resurgence in the fast-moving delta virus variant. spread.
The Stoxx 600 Index opened little changed as gains in tech companies offset declines in energy and mining stocks. Crude oil extended last week’s decline, the worst since October, on fears that the delta virus strain would hamper demand growth.
Precious metals were sold and gold hit the lowest level since March before cutting losses. Silver fell to its lowest level since November. Strong US payroll data on Friday raised the possibility of higher rates, which would make precious metals less attractive compared to other assets.
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Asian stocks were mixed, as stocks rose in Hong Kong and China and fluctuated in South Korea. The 10-year US Treasury yield held steady at around 1.3%, while the dollar shifted. Chinese bond yields rose after inflation data beat expectations.
Friday’s strong payroll report, as well as comments from Dallas Fed Chairman Robert Kaplan, have stoked expectations that the Federal Reserve may soon begin to reduce its massive monetary stimulus. That’s even as the wild delta variant could mean a slower economic recovery and a tight labor market, Kaplan warned. Also in the mix are mounting price pressures, and this week’s US inflation data is a key marker for investors ahead of the Jackson Hole symposium later this month.
“They have these concerns that if the economy is growing very, very strongly, that could lead to the tightening or downsizing of the Fed,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, said on Bloomberg Television. “There is a good chance that they will announce that reduction in September and it would start later this year.”
Elsewhere, Chinese tech stocks have been under pressure amid concerns about a crackdown in Beijing. Bitcoin traded close to $ 43,000 after hitting the highest level since May over the weekend.
Here are some of the key events to watch out for this week:
Atlanta Fed President Raphael Bostic; Richmond Fed Chairman Tom Barkin; Cleveland Fed President Loretta Mester; Kansas City Fed Chair Esther George Among Fed Speakers During the Week Wednesday’s US Consumer Price Index is forecast to show prices rising again in the Monthly Oil Market Report July OPEC to be presented on Thursday
For more market analysis, read our MLIV blog.
These are the main movements in the markets:
The Stoxx Europe 600 was little changed at 8:21 am London time S&P 500 futures were down 0.2% Nasdaq 100 futures were little changed Dow Jones Industrial Average futures were down 0.2% The index MSCI Asia Pacific was little changed MSCI Emerging Markets Index changed little
The Bloomberg Dollar Spot Index changed little The euro changed little to $ 1.1761 The Japanese yen changed little to 110.18 per dollar The offshore yuan changed little to 6.4768 per dollar The British pound changed little to 1.3875 Dollars
10-year Treasury yield changed little to 1.29% Germany’s 10-year yield changed little to -0.46% Britain’s 10-year yield decreased one basis point to 0.60%
Brent crude fell 2.3% to $ 69.07 a barrel and spot gold fell 0.9% to $ 1,747.96 an ounce.
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