US stock futures gain, Treasury yields rise
investmentnews.comUS stock futures pointed to a rebound from last week’s selloff, while Treasury yields rose. Wheat prices climbed as Ukraine attacked a Russian oil tanker in the Kerch Strait, threatening a key export route.
S&P 500 contracts added 0.4% in early European trading and 10-year Treasury yields increased five basis points, reversing some of the moves made on Friday in the wake of a mixed US jobs report.
In European markets, the focus was on German bonds. Two-year notes rallied as much as six basis points in response to an announcement made late on Friday by the Bundesbank, which said it will stop paying interest on domestic government deposits. The move caught traders off guard and fueled speculation that more money will flow into higher-yielding securities.
Trading in European stock markets was subdued on Monday, with most investors still considering the conflicting economic signals in Friday’s US jobs report, which showed softer-than-expected payrolls growth, but wages above forecasts. In remarks prepared for an event in Colorado on Saturday, Federal Reserve Governor Michelle Bowman said the policymakers may need to raise rates further in order to fully restore price stability.
The key data point for the week will be US consumer price index reading on Thursday, which is expected to show moderate price growth. The index is projected to rise 0.2% in July for a second month after excluding food and energy costs, marking the smallest back-to-back gains in 2 1/2 years.
In Asia, the yen fell for the first time in four days. A summary of opinions from the Bank of Japan’s July meeting showed that one member said the central bank should allow greater flexibility in yield curve control.
Key events this week:
Some of the main
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