Index futures in the US were neutral as an earnings-driven surge came to a halt amid a widening supply constraint and coronavirus restrictions in China. Shorter-term Treasury yields slipped as traders reduced their bets on rate hikes throughout the world.
The DJ industrial average's December futures fell after the underlying gauge surpassed its 36,000 level on Monday. Russell 2000 contracts increased. Bonds from Europe to the United States rose as Australia showed forbearance with rate hikes. China's steel output fell, causing iron-ore futures to fall. In New York, Tesla led the premarket losses.
Bond and currency markets prepare for the Fed to announce a reduction of asset purchases as a first step toward raising interest rates to control inflation. On the other side, equities markets are concentrating on earnings growth and valuations. Meanwhile, as Covid makes a resurgence in certain areas of the world, a mix of data on global economic recovery is further clouding the picture.
- China's Premier Li: Seeing new downward risks for China's economy - State Media
- German parties in discussions for a coalition are talking about deferring repayment of the Covid-19 debt to give themselves more fiscal agility.
- ECB's Chief Supv. Enria: Banks predict gross NPL's to continue to decline at least through to the end of 2022.