US equity futures have risen and bond yields have fallen, as investors feel more comfortable with the outlook for inflation and the pace of the economic recovery.
Futures linked to the S&P 500 added 0.5%, indicating a positive start to the week after the broad market index fell moderately for two consecutive weeks. Nasdaq-100 futures were up 0.7%, suggesting gains for tech stocks after the opening bell.
“Concerns about inflation have eased, it is increasingly recognized that inflation will be transient,” said Fahad Kamal, chief investment officer at Kleinwort Hambros. “It reflects the fact that we have reached the quickest part of the recovery. Growth, while continuing, will slow down. ”
In bond markets, the benchmark 10-year Treasury yield fell to 1.618% on Monday from 1.629% on Friday. Yields fall when prices rise.
Cryptocurrencies continued a dramatic period of trading. Bitcoin gained ground after hitting multi-month lows on Sunday and traded around $ 36,450, a 3.4% rise from 5 p.m. ET on Friday. The cryptocurrency has lost over 40% of its value since its peak in mid-April.
“Decentralized finance is facing its first real challenge since its creation. We don’t think this is the end, the bubble hasn’t really burst yet, ”said Monica Defend, Global Head of Research at Amundi. “Central banks are ready to play in the area of digital currency, I think with central banks involved there will be more regulation to come and more transparency.”
The Chicago Fed’s National Activity Index, which is considered an indicator of economic activity and inflationary pressure, will be released at 8:30 a.m. ET.
Federal Reserve Governor Lael Brainard will speak about digital currencies at a virtual event hosted by CoinDesk at 9 a.m.
The winning season is drawing to a close. This week, tech companies such as Nvidia on Wednesday and Salesforce.com and Dell Technologies on Thursday are expected to report.
In pre-market trading, Moderna rose 2.2% after closing deal with Samsungfrom
biotechnology division to manufacture its Covid-19 vaccines in South Korea.
In commodities, the world’s benchmark Brent rose 1.8% to $ 67.65 a barrel. Goldman Sachs analysts released a note Sunday with a forecast it will hit $ 80 by the summer.
“It’s always about giving the green light to commodity inflation flows,” said Gregory Shearer, commodities analyst at JPMorgan. But the Federal Reserve minutes last week, “where they started talking about cuts, it makes people a little less concerned. [inflation] fleeing out of control.
Abroad, the pan-continental Stoxx Europe 600 was relatively flat, oscillating between small gains and losses. Monday is a public holiday in several European countries, including Germany and Denmark.
Among European stocks, IT services firm Solutions 30 plunged more than 70% after auditor EY refused to approve its accounts.
In Asia, the major benchmarks were mixed. The Shanghai Composite Index rose 0.3% while the Hong Kong Hang Seng Index fell 0.2%.
Write to Anna Hirtenstein à [email protected]
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