European stocks and U.S. equity futures bounced before inflation data out of the U.S. along with earnings reports that will measure corporate health in an era of rising costs.
S&P 500 contracts erased an earlier loss before the U.S. consumer report while news that the chip shortage may crimp Apple Inc.’s output weighed on sentiment. European stocks posted modest gains led by tech and auto-parts makers.
The U.S. 10-year Treasury yield held below 1.60% and a gauge of the dollar ticked lower. A rally in oil paused but crude remained around $80 a barrel amid a global energy crunch. Chinese thermal coal futures hit another record high.
Apple fell in the premarket on a likely cut in iPhone 13 production targets for 2021 due to chip shortages, putting the focus on pandemic-related supply-chain snarls as earnings season kicks off.
The upcoming flurry of corporate earnings releases will offer insight into whether businesses expect price pressures to hurt profits at a time when economic growth is slowing and central banks begin to pare back pandemic stimulus.
In cryptocurrencies, Bitcoin pared its recent rally and traded around $56,300.
Most Asian stock markets rose, but regional gains were capped by a small move lower in Japan and the cancellation of trading in Hong Kong due to typhoon Kompasu.
Here are a few events to watch this week:
- U.S. FOMC minutes and CPI Wednesday
- China PPI, CPI Thursday
- U.S. initial jobless claims, PPI Thursday
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
- The Stoxx Europe 600 rose 0.4% as of 9:47 a.m. London time
- Futures on the S&P 500 rose 0.2%
- Futures on the Nasdaq 100 rose 0.4%
- Futures on the Dow Jones Industrial Average rose 0.2%
- The MSCI Asia Pacific Index rose 0.2%
- The MSCI Emerging Markets Index rose 0.5%
- The Bloomberg Dollar Spot Index fell 0.2%
- The euro rose 0.3% to $1.1560
- The Japanese yen was little changed at 113.54 per dollar
- The offshore yuan rose 0.2% to 6.4438 per dollar
- The British pound rose 0.3% to $1.3635
- The yield on 10-year Treasuries declined one basis point to 1.56%
- Germany’s 10-year yield declined three basis points to -0.12%
- Britain’s 10-year yield declined four basis points to 1.11%
- Brent crude fell 0.4% to $83.12 a barrel
- Spot gold rose 0.4% to $1,767.52 an ounce