Catch future U.S. risk-on waves; Dollar retreat: market wrap

U.S. equity futures have jumped as risky appetite has returned to markets in recent weeks due to concerns about global economic growth, upward prices and policy tightening. Treasury yields have risen and the dollar has fallen.

S&P 500 deals are back after a Wall Street drop, while tech-heavy Nasdaq 100 futures rose more than 2% before pre-pairing. Citigroup Inc.’s Warren Buffett’s Berkshire Hathaway lender stake in premarket trading rose 5.5%. Advanced Micro Devices Inc. Tesla Inc. And Nvidia Corp. Co-technology names were among the biggest premarket winners ৷

Technology and basic-stock stocks led a broad-based advance of the Europe 600 600 after a rally in shares of Chinese technology over optimism that Beijing could ease a year-long clampdown. Equities were also overwhelmed by the fact that the euro-area economy expanded more than initially expected at the beginning of the year, as the region underwent a wave of Covid-19 infections and denied headaches since the first days of the Ukraine war.

A challenging global economic outlook between high food and fuel costs and tightening of financial settings continues to shape sentiment. Oil prices rose to about 4 114 a barrel and a record high in agricultural prices. But a bond-market measure – a five-year breakaway rate – signals that inflation has peaked, while the latest virus development has raised hopes that China’s damaging lockdowns could be eased soon.

Investors’ appetite for risky assets is growing after many welcomed today’s positive unemployment and GDP figures from the eurozone and the UK, said Pierre Verrett, an analyst at ActivTrades plc. “The improvement in the virus situation in China is also a source of relief for investors.”

Bond yields have risen across Europe, with the 10-year UK rate rising as much as 10 basis points as traders added tough bets after strong job data. The pound strengthened more than 1% against the dollar, reaching a two-week high.

An Asian stock index rose for a third day – its longest winning streak since mid-March – in a jump from some tech firms and investors in assessing China’s efforts to stamp out Kovid. A meeting between the country’s top regulators and corporate giants on Tuesday raised hopes that the shattered technology sector was nearing a turning point.

Meanwhile, Shanghai has reported a three-day zero-community transition, a milestone that could free officials from a punitive lockdown. Elsewhere in China, flareups have shown how difficult it is to deal with Omicron strains.

With Bitcoin rising above the 30,000 mark, cryptocurrencies have experienced the latest volatility.

John Williams, president of the New York Fed, downplayed the deteriorating liquidity situation in financial markets on Monday, saying it was expected by investors due to uncertainty over global events and a change in US monetary policy. The Fed speaker, along with chair Jerome Powell, will speak later Tuesday.

What to watch this week:

  • Fed Chair Jerome Powell in Fed Speaker’s Slate Tuesday
  • The Reserve Bank of Australia released the minutes of its May policy meeting on Tuesday
  • G-7 Finance Minister and Central Bankers meet on Wednesday
  • Eurozone, UK CPI Wednesday
  • Philadelphia Fed President Patrick Harker spoke Wednesday
  • China debt main rate on Friday

Some of the major rice in the market:


  • The S&P 500 futures rose 1.5% as of 8:04 a.m. New York time
  • The Nasdaq 100 futures rose 1.8%
  • The Dow Jones Industrial Average futures rose 1.3%
  • Stoxx Europe 600 rose 1.5%
  • The MSCI world index rose 0.7%


  • The Bloomberg Dollar Spot Index fell 0.6%
  • The euro rose 0.8% to 0 1.0518
  • The British pound rose 1.2% to 24 1.2466
  • The Japanese yen fell 0.2% to 129.36 against the dollar


  • Yields on the 10-year Treasury rose four basis points to 2.92%
  • Germany’s 10-year yield rose nine basis points to 1.02%
  • UK 10-year yield rises 10 basis points to 1.82%


  • West Texas Intermediate crude rose 0.7% to 4 114.96 a barrel
  • Gold futures rose 0.7% to 27 1827.20 an ounce

© 2022 Bloomberg

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