(Bloomberg) — U.S. equity-index futures rose along with stocks in Europe as investors awaited minutes from the Federal Reserve’s latest meeting for clues on policy makers’ thinking on interest rates and stimulus. Bonds stabilized after a rally.
The Stoxx Europe 600 Index climbed, led by gains in commodity sectors, with Royal Dutch Shell Plc rising more than 3% after saying it will boost returns to shareholders. Contracts on the S&P 500 Index edged higher after the underlying gauge slid on Tuesday, while futures on the Nasdaq 100 advanced after the index closed at a record.
Ten-year Treasury yields slipped after hitting February lows in U.S. hours, while those on core European bonds also dipped. The dollar was steady against a basket of major currencies. Oil extended gains amid the OPEC+ crisis, which has stymied efforts to raise production and buffeted prices.
Investors are taking heart from soft U.S. data that suggests the Fed will hold off on tapering for now. But with global stocks near all-time highs and inflationary pressures in focus, they’ll pay close attention to the wording of the minutes from the central bank’s last meeting for clues on the policy path. A rise in coronavirus cases caused by the spread of the delta variant is also threatening the worldwide economic recovery.
“Signs that the recovery is not too hot nor too cold imply that policy normalization could be very gradual,” Credit Agricole CIB strategists led by Jean-François Paren wrote in a note. “This supports our view that while the Fed will discuss tapering from the upcoming meetings, the actual tapering is unlikely to start before next year.”
Elsewhere, copper declined and gold advanced for a sixth day. Australian and New Zealand bonds rallied. Asian stocks fell, with Chinese tech firms in Hong Kong retreating after Beijing’s cybersecurity probe of ride-hailing giant Didi Global Inc.
For more market commentary, follow the MLIV blog.
Here are some events to watch this week:
FOMC minutes WednesdayThe Group of 20 finance ministers and central bankers meet in Venice on FridayChina PPI and CPI data released on Friday
These are some of the main moves in markets:
Stocks
Futures on the S&P 500 rose 0.1% as of 9 a.m. London timeFutures on the Nasdaq 100 rose 0.4%The Stoxx Europe 600 rose 0.5%The MSCI World index was little changedThe MSCI Emerging Markets Index fell 0.3%
Currencies
The Bloomberg Dollar Spot Index was little changedThe euro was little changed at $1.1823The British pound was unchanged at $1.3800The Japanese yen was little changed at 110.66 per dollarThe offshore yuan rose 0.2% to 6.4685 per dollar
Bonds
The yield on 10-year Treasuries declined one basis point to 1.34%Germany’s 10-year yield declined one basis point to -0.28%Britain’s 10-year yield declined one basis point to 0.62%
Commodities
West Texas Intermediate crude rose 0.9% to $74.04 a barrelGold futures rose 0.7% to $1,806.80 an ounce
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