US Futures Dip, Stocks Pare Gains as Bonds Advance: Markets Wrap

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(Bloomberg) -- US equity futures retreated and Asian stocks trimmed gains Monday arsenic slowing economical maturation and sticky ostentation continued to formed a shadiness crossed markets.

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Japanese shares added 1% but China and Hong Kong were connected the backmost foot. S&P 500 and Nasdaq 100 contracts shed much than 0.5%. US banal and enslaved markets volition beryllium closed Monday for the Independence Day break.

Bonds successful Australia and New Zealand climbed, extending a rally successful sovereign debt. Investors are reassessing however precocious cardinal banks tin hike involvement rates to combat ostentation fixed that economical enlargement is wobbling. Treasury futures edged up -- there’s nary currency Treasuries trading owed to the US holiday.

The yen and Swiss franc pushed higher. Crude lipid slid toward $108 a barrel. Bitcoin hovered conscionable supra the $19,000 level.

In the US and elsewhere, signs of economical weakness are becoming much evident successful everything from idiosyncratic spending to manufacturing. Investors are progressively fretting astir recession and its implications alternatively than focusing exclusively connected elevated terms pressures.

The science of the marketplace is “shifting radically from ostentation concerns to 1 present wherever we’re firmly focused connected growth,” Chris Weston, caput of probe astatine Pepperstone Group, wrote successful a note. One of the fears present is that the Fed volition beryllium excessively dilatory successful dialing backmost connected complaint increases, helium said.

In China, Covid cases continued to emergence implicit the weekend, different trial for its strategy of trying to destruct the pathogen with wide investigating and lockdowns.

Separately, Chinese developer Shimao Group Holdings Ltd. said it didn’t wage a $1 cardinal dollar enactment that matured Sunday, adding to a grounds twelvemonth of offshore-bond delinquencies successful the sector.

What to ticker this week:

  • Australia complaint decision, Tuesday

  • PMIs for euro area, China, India among others, Tuesday

  • US mill orders, durable goods, Tuesday

  • FOMC minutes, US PMIs, ISM services, JOLTS occupation openings, Wednesday

  • EIA crude lipid inventory report, Thursday

  • Fed Governor Christopher Waller, St. Louis Fed President James Bullard, scheduled to speak, Thursday

  • ECB relationship of its June argumentation meeting, Thursday

  • US employment study for June, Friday

Some of the main moves successful markets:

Stocks

  • S&P 500 futures fell 0.6% arsenic of 11:03 a.m. successful Tokyo. The S&P 500 roseate 1.1% Friday

  • Nasdaq 100 futures fell 0.6%. The Nasdaq 100 roseate 0.7% Friday

  • Japan’s Topix scale roseate 1.1%

  • Australia’s S&P/ASX 200 scale accrued 1.4%

  • South Korea’s Kospi scale shed 0.2%

  • Hong Kong’s Hang Seng scale mislaid 0.7%

  • China’s Shanghai Composite scale fell 0.1%

  • Euro Stoxx 50 futures roseate 0.6%

Currencies

  • The Bloomberg Dollar Spot Index was steady

  • The euro was astatine $1.0434, up 0.2%

  • The Japanese yen was astatine 135.08 per dollar, up 0.1%

  • The offshore yuan was astatine 6.6987 per dollar

Bonds

  • The output connected 10-year Treasuries declined 13 ground points to 2.88% Friday

  • Australia’s 10-year output declined astir 10 ground points to 3.50%

Commodities

  • West Texas Intermediate crude fell 0.4% to $108.02 a barrel

  • Gold was astatine $1,808.61 an ounce, down 0.2%

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