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(Bloomberg) – US stocks and futures were flat on Friday as risks to the global recovery in China and the prospect of a reduced Federal Reserve stimulus dampened sentiment. Iron ore was on track for a record weekly decline.
Stocks made modest gains in Japan and Hong Kong and fluctuated in China, where the central bank boosted liquidity injections into the financial system as traders watch the fallout from the China Evergrande group debt crisis. . Miners have undermined Australian stocks amid falling iron ore prices.
The S&P 500 and Nasdaq 100 futures contracts were little changed. US stocks closed mostly lower after swinging between gains and losses ahead of the quarterly expiration of options and futures on Friday, which can trigger volatility.
Yields on Treasuries and the dollar remained higher after the surprise strength of retail sales in the United States, easing economic worries over delta tension and highlighting the case for a less broad support from the Fed. Unemployment claims have risen, likely reflecting volatility in weekly data as the labor market generally rallies.
Global stocks are on track for a second weekly decline, held back by the impact of the delta virus variant on the economic reopening, the implications of high inflation and the turmoil in China. The Fed’s policy meeting next week is a possible source of volatility as traders wait for more clues on the timetable to reduce bond purchases and possibly raise interest rates.
“Investors should just be prepared for the fact that returns are much more likely to be reduced over the next five years than what we have actually enjoyed and enjoyed over the past five,†said Jim McDonald, chief strategist. Northern Trust Bank investments, Bloomberg Television. This view incorporates the prospect of lower valuations for Chinese companies facing greater government involvement, he said.
Oil has held steady, as streak of iron ore losses threatens to push futures contracts below $ 100 a tonne as China struggles to curb its steel industry. Gold has cut a drop. A commodity price index has fallen but remains within sight of a record high in 2011, underscoring inflationary concerns spilling over to the global economy.
Meanwhile, the European Central Bank has dismissed the accuracy of a Financial Times report on the eurozone interest rate outlook. Bund futures had fallen on the article, which indicated that the ECB could meet its 2% inflation target by 2025 based on unpublished internal models that foreshadowed rate hikes earlier than planned.
For more market analysis, read our MLIV blog.
Some of the main movements in the markets:
Actions
S&P 500 futures were flat at 12:10 p.m. in Tokyo. The S&P 500 fell 0.2%. Futures on the Nasdaq 100 fell less than 0.1%. The Nasdaq 100 rose 0.1% Japan’s Topix index rose 0.3% Australian S & P / ASX 200 index lost 0.6% South Korea’s Kospi rose 0.2% China’s Shanghai Composite index rose 0.2% Hong Kong’s Hang Seng index added 0.3% Euro Stoxx 50 futures rose 0.6%
Currencies
Bloomberg Dollar Spot Index was stable Euro was at $ 1.1768 Offshore Yuan was at 6.4546 per dollar Japanese yen was at 109.85 per dollar, down 0.1%
Obligations
The yield on 10-year Treasuries fell by about one basis point to 1.33% The yield on 10-year Australian bonds rose three basis points to 1.30%
Merchandise
West Texas Intermediate crude was at $ 72.52 per barrel, down 0.1% Gold was at $ 1,758.98 per ounce, up 0.3%
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