US futures, bonds drop as economic outlook fades

US futures, bonds drop as economic outlook fades

Stocks















Bloomberg

US equity futures fall on Monday, while Treasury yields rise, as a jump in energy costs highlighted inflation concerns and cracks in China’s Covid-19-afflicted economy dimmed the growth outlook.

US index futures followed a decline in Asia-Pacific stocks, which were sapped by Japan and China. Markets in Australia, Hong Kong and much of Europe remain shut for Easter.

Treasuries declined as investors look forward to speeches by Federal Reserve policy makers this week for new clues on whether it will raise interest rates by a half point in May to curb price pressures. A cautious overall investor mood bolstered the dollar and gold.

Natural gas advanced and oil held gains, partly on risks from Russia’s war in Ukraine. These include the possibility of a de facto European Union embargo on Russian gas and the threat of some curbs on crude in the next European sanctions.

The pattern across markets suggests investors remain uncertain whether high inflation has peaked or not. Price pressures are being fanned by supply-chain snarls from China’s Covid-19 restrictions and disruptions to commodity flows due to the war. Concern is growing that the US economy faces