US equity futures fall; Treasuries stabilise

US equity futures fall; Treasuries stabilise

Stocks















Bloomberg

Stocks in Europe trimmed gains and US index futures dipped as investors took stock of the outlook for monetary policy ahead of key inflation data later this week. Treasury yields and the dollar were stable.

The Stoxx Europe 600 index, coming off its longest streak of weekly losses in almost a year, was up around 0.3%, with retail and basic-recourses shares outperforming. S&P 500 and Nasdaq 100 contracts fluctuated following Friday’s bounce on Wall Street. The 10-year Treasury yield was little changed near a two-year high and bunds were steady as the global bond rout showed signs of easing, though yields on peripheral European debt ticked higher. The dollar was little changed, while the euro snapped a six-day strengthening run. Crude oil dipped below $92 a barrel.

Investors are grappling with the prospect of the steepest monetary tightening cycle since the 1990s, with markets pricing in more than five quarter-point Federal Reserve interest-rate hikes in 2022 following a strong US jobs report. The US inflation report this week could lead to more market volatility. A reading north of 7%, the highest since the early 1980s, is expected.

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