US equity futures climbed and Asian stocks were mixed Monday following another record high for the S&P 500 Index as weak jobs data reinforced the case for stimulus. Gasoline and crude oil rose after a cyberattack forced the closure of a key US pipeline.
The materials sector led gains in an Asia-Pacific share index as commodities advanced. Australian stocks ended at an all-time high, while Hong Kong and China dropped. Gasoline jumped as much as 4.2% to a three-year high before paring the increase, with US operator Colonial Pipeline providing no timeline for a restart following a shutdown late Friday due to a ransomware attack.
Iron ore futures surged and copper jumped to a record amid growing bets they’ll be among the biggest winners from a commodities boom. Treasury yields edged up toward 1.60% as traders brace for a busy week of auctions.
Meanwhile, China’s onshore yuan hit its strongest level versus the dollar since 2018. The pound touched a 10-week high after UK elections denied Scotland’s main independence party an outright majority and strengthened the grip of the Conservatives.
The energy price surge is adding to the inflation debate ahead of a US CPI report this week that is forecast to show prices rising further in April. Investors will also parse comments from a series of Federal Reserve speakers for guidance on their thinking about the path of growth and policy following some softer-than-anticipated U.S. economic data.
“At the moment the view is very much that inflation is transitory,” Mo Apabhai, head of Asia trading strategy at Citigroup Global Markets, said on Bloomberg Television. “At the end of the day the disinflationary forces are still very strong in the economy.”
US jobs rose by 266 000 in April, trailing the projected one million jump, and suggesting that the Fed may hold its accommodative stance for even longer. Treasury Secretary Janet Yellen said the report “underscores the long-haul climb back to recovery,” while reiterating her expectation for a return to full employment next year.
Here are some key events to watch this week:
- A range of Fed speakers are due this week, including Chicago Fed President Charles Evans on the economic outlook Monday and US Fed Governor Lael Brainard on Tuesday, among others.
- Chinese inflation data are due Tuesday.
- OPEC monthly Oil Market Report is published with global demand forecasts and production estimates Tuesday.
- US CPI report Wednesday is forecast to show prices continued to increase in April.
- Bank of England Governor Andrew Bailey speaks Wednesday.
These are some of the main moves in markets:
- S&P 500 futures rose 0.2% as of 7:10 a.m. in London. The S&P 500 added 0.7%
- Nasdaq 100 futures rose 0.1%. The Nasdaq 100 rose 0.8%
- Japan’s Topix index advanced 1%
- Australia’s S&P/ASX 200 Index rose 1.3%
- South Korea’s Kospi index added 1.8%
- Hong Kong’s Hang Seng Index fell 0.3%
- China’s Shanghai Composite Index slipped 0.2%
- Euro Stoxx 50 futures rose 0.4%
- The yen fell 0.2% to 108.83 per dollar
- The offshore yuan lost 0.2% to 6.4274 per dollar
- The Bloomberg Dollar Spot Index was little changed after falling 0.7% Friday
- The euro was at $1.2154
- The pound rose 0.4% to $1.4044
- The yield on 10-year Treasuries rose about two basis points to 1.60%
- Australia’s 10-year bond yield rose three basis points to 1.71%
- West Texas Intermediate crude increased 0.6% to $65.26 a barrel
- Gold was at $1,838.23 an ounce, up 0.4%