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Nasdaq Leads Futures Higher as Yields Steady: Markets Wrap

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(Bloomberg) — The Nasdaq 100 Index led U.S. equity futures higher while Treasury yields were steady.

Futures on the S&P 500 and Dow Jones Industrial Average also pointed to a recovery in the underlying gauges, which slipped Tuesday amid a setback for reopening favorites. Shares in Intel Corp. rose in premarket trading after it unveiled a plan to make chips for other companies amid a global shortage.

The stabilization in bond yields and assurances by Federal Reserve Chairman Jerome Powell on inflation risks has helped allay fears that a growth breakout will force tighter central-bank policy.

Treasury auctions scheduled for Wednesday and Thursday will be closely watched for the direction of yields since a disastrous seven-year auction sparked a global bond selloff last month. Today’s offerings include $61 billion of five-year notes.

“Yields have been tamed in recent sessions,” according to Steen Jakobsen, chief investment officer at Saxo Bank. The auctions “will help determine whether the ‘rising U.S. yields’ narrative can be entirely taken off the front burner for now,” he wrote in a note.

European stocks edged lower, with cyclical stocks including banks and auto firms among the fallers. A gauge of Asia-Pacific shares fell the most in about two weeks. In five weeks, Hong Kong equities fell to a 10% correction amid the city’s decision to temporarily suspend BioNTech SE vaccines.

Meanwhile, West Texas Intermediate crude rose more than 3% after a container ship ran aground in the Suez Canal, blocking off traffic in both directions on one of the world’s busiest maritime trade routes. Bitcoin rose after Tesla Inc. Chief Executive Officer Elon Musk tweeted that the firm’s cars can be purchased with the most prominent cryptocurrency.

These are some key events to watch this week:

The U.S. Treasury holds auctions of five- and seven-year debt.EIA crude oil inventory report on Wednesday. U.S. personal income and spending data on Friday.

These are some of the significant moves in financial markets:

Stocks

Futures on the S&P 500 Index increased 0.4% as of 6:27 a.m. New York time. The Stoxx Europe 600 Index decreased 0.1%. The MSCI Asia Pacific Index declined 1.5%. The MSCI Emerging Market Index declined 1.1%.

Currencies

The Bloomberg Dollar Spot Index increased 0.1%. The euro fell 0.2% to $1.1826.The British pound sank 0.2% to $1.3719.The onshore yuan weakened 0.1% to 6.52 per dollar. The Japanese yen weakened 0.1% to 108.74 per dollar.

Bonds

The yield on 10-year Treasuries rose one basis point to 1.63%. The work on two-year Treasuries climbed less than one basis point to 0.15%. Germany’s 10-year yield sank one basis point to -0.35%. Japan’s 10-year yield fell one basis point to 0.073%. Britain’s 10-year yield dipped less than one basis point to 0.759%.

Commodities

West Texas Intermediate crude climbed 2.6% to $59.27 a barrel.Brent crude climbed 2.6% to $62.36 a barrel.Gold strengthened 0.4% to $1,733.17 an ounce.

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Effie F. Bush is a 27-year-old junior manager who enjoys praying, social card games, and listening to music. She is inspiring and brave, but can also be very disloyal and a bit unfriendly.She is an Australian Christian who defines herself as straight. She has a post-graduate degree in business studies.

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