(Bloomberg) — U.S. equity futures retreated with European stocks after a governing member of the European Central Bank said it may be time to assess pandemic stimulus programs.
S&P 500 and Nasdaq 100 futures pared an earlier advance after the 12th all-time high for the S&P 500 in August. The dollar weakened and Treasuries slipped, pushing the yield on the 10-year benchmark closer to 1.3%. In Europe, the Stoxx 600 Index lost as much as 0.4%.
In an interview that brought the taper debate from the U.S. to Europe, European Central Bank Governing Council member Robert Holzmann said the region’s recovery allows the monetary authority to consider scaling back emergency bond purchases.
That was enough to unnerve a market that was headed for its longest streak of monthly gains since 2013 as traders considered whether lofty valuations can survive withdrawal of monetary stimulus.
The S&P 500, meanwhile, is on track for its seventh straight monthly advance, the longest winning streak since January 2018, amid a tonic of strong company profits and moderate monetary policy. The heady gains are stirring doubts as warnings mount over a slower recovery as the delta variant delays economic reopenings in some parts of the world.
Traders now await key payrolls data Friday for a read on the U.S. economy’s strength and to help shape bets on the Federal Reserve’s next move on bond tapering.
Among notable pre-market moves, Zoom Video Communications Inc. dropped more than 13% as the video-conferencing company’s forecasts signalled growth may flag with remote meetings losing allure as people return to offices.
Elsewhere, oil fell as traders assess the prospect of additional OPEC+ production. Aluminum and nickel advanced as Goldman Sachs Group Inc. raised target prices.
In cryptocurrencies, Bitcoin fell to about $48,000.
Here are some key events to watch this week:
OPEC+ meeting on output WednesdayEuro zone manufacturing PMI WednesdayU.S. jobs report Friday
For more market analysis read our MLIV blog.
Some of the main moves in markets:
Stocks
Futures on the S&P 500 Index decreased 0.1% as of 1:26 p.m. London time.The Stoxx Europe 600 Index dipped 0.3%.The MSCI Asia Pacific Index rose 1.2%.The MSCI Emerging Market Index rose 1.5%.
Currencies
The Bloomberg Dollar Spot Index sank 0.3%.The euro jumped 0.3% to $1.1838.The British pound gained 0.2% to $1.3781.The onshore yuan strengthened 0.1% to 6.461 per dollar.The Japanese yen strengthened 0.1% to 109.76 per dollar.
Bonds
The yield on 10-year Treasuries gained one basis point to 1.29%.The yield on two-year Treasuries climbed less than one basis point to 0.20%.Germany’s 10-year yield rose four basis points to -0.40%.Japan’s 10-year yield increased less than one basis point to 0.025%.Britain’s 10-year yield increased 10 basis points to 0.677%.
Commodities
West Texas Intermediate crude dipped 0.8% to $68.66 a barrel.Brent crude declined 0.8% to $72.81 a barrel.Gold strengthened 0.1% to $1,812.55 an ounce.
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