US stock futures gain, Treasury yields rise

US stock futures gain, Treasury yields rise
CPI data in focus this week and prices are set for moderate increase.
AUG 07, 2023
By  Bloomberg

US stock futures pointed to a rebound from last week’s selloff, while Treasury yields rose. Wheat prices climbed as Ukraine attacked a Russian oil tanker in the Kerch Strait, threatening a key export route. 

S&P 500 contracts added 0.4% in early European trading and 10-year Treasury yields increased five basis points, reversing some of the moves made on Friday in the wake of a mixed US jobs report. 

In European markets, the focus was on German bonds. Two-year notes rallied as much as six basis points in response to an announcement made late on Friday by the Bundesbank, which said it will stop paying interest on domestic government deposits. The move caught traders off guard and fueled speculation that more money will flow into higher-yielding securities. 

Trading in European stock markets was subdued on Monday, with most investors still considering the conflicting economic signals in Friday’s US jobs report, which showed softer-than-expected payrolls growth, but wages above forecasts. In remarks prepared for an event in Colorado on Saturday, Federal Reserve Governor Michelle Bowman said the policymakers may need to raise rates further in order to fully restore price stability.

The key data point for the week will be US consumer price index reading on Thursday, which is expected to show moderate price growth. The index is projected to rise 0.2% in July for a second month after excluding food and energy costs, marking the smallest back-to-back gains in 2 1/2 years. 

In Asia, the yen fell for the first time in four days. A summary of opinions from the Bank of Japan’s July meeting showed that one member said the central bank should allow greater flexibility in yield curve control. 

Key events this week:

  • Atlanta Fed President Raphael Bostic and Fed Governor Michelle Bowman at Fed Listens event, Monday
  • Japan household spending, Tuesday
  • US wholesale inventories, trade, Tuesday
  • Philadelphia Fed President Patrick Harker speaks, Tuesday
  • China CPI, PPI, Wednesday
  • India rate decision, Thursday
  • US initial jobless claims, CPI, Thursday
  • Atlanta Fed President Raphael Bostic pre-recorded remarks for employment webinar, Thursday
  • UK industrial production, GDP, Friday
  • US University of Michigan consumer sentiment, PPI, Friday

Some of the main moves in markets:

STOCKS
  • The Stoxx Europe 600 fell 0.1% as of 9:32 a.m. London time
  • S&P 500 futures rose 0.4%
  • Nasdaq 100 futures rose 0.5%
  • Futures on the Dow Jones Industrial Average rose 0.3%
  • The MSCI Asia Pacific Index was little changed
  • The MSCI Emerging Markets Index was little changed
CURRENCIES
  • The Bloomberg Dollar Spot Index rose 0.1%
  • The euro fell 0.2% to $1.0980
  • The Japanese yen fell 0.4% to 142.31 per dollar
  • The offshore yuan fell 0.2% to 7.2038 per dollar
  • The British pound fell 0.1% to $1.2730
CRYPTOCURRENCIES
  • Bitcoin fell 0.3% to $29,013.65
  • Ether rose 0.1% to $1,832.15
BONDS
  • The yield on 10-year Treasuries advanced six basis points to 4.10%
  • Germany’s 10-year yield advanced two basis points to 2.58%
  • Britain’s 10-year yield advanced five basis points to 4.43%
COMMODITIES
  • Brent crude fell 0.3% to $85.93 a barrel
  • Spot gold fell 0.4% to $1,934.94 an ounce

This story was produced with the assistance of Bloomberg Automation.

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.