Tech-led equity futures rise
US equity futures rose, putting indices on track for further gains as investors waited for new data on the health of the real estate market.
Futures linked to the broad S&P 500 index rose 0.3%, while blue-chip futures on the Dow Jones Industrial Average gained 0.2%. Futures on the Nasdaq-100 rose 0.7%, putting tech stocks on track to rise after the opening bell, a day after leading wider markets higher.
Stocks surged to start the week, as recent comments from Federal Reserve officials helped allay fears that rising inflation could dampen growth or prompt the central bank to suddenly tighten policy.
“The comments we have received from Fed speakers have told the market exactly what it wants to hear: that they are not concerned about the inflation data and that it has not changed their plan to be very careful, ”said Hugh Gimber, a strategist. at JP Morgan Asset Management.
Bitcoin prices have stabilized after several days of whipsaw trading for the cryptocurrency markets. Bitcoin was down slightly by less than 0.1% to $ 38,812 from late Monday afternoon. Investors felt reassured in the recent episode that more traditional asset classes were not affected by volatile Bitcoin trading, Gimber said.
“With all the volatility we’ve experienced, it’s encouraging to see that larger markets are still focused on economic fundamentals,” he said.
Investors are awaiting data on the US real estate market, which is expected to be released at 10 a.m. ET. The data should show that sales of newly built homes cooled in April amid high prices and tight inventories. Economists expect the S&P CoreLogic Case-Shiller National House Price Index at 9 a.m. ET to show a double-digit annual increase for the fourth consecutive month.
U.S. consumer confidence data for May is also expected to be released at 10 a.m. ET.
Overseas, the Stoxx Europe 600 index rose 0.3%.
German real estate company Deutsche Wohnen jumped more than 15% after welcoming a takeover bid from counterpart Vonovia that would create Europe’s largest residential real estate group, with a combined market capitalization of around 45 billion euros, or about $ 55 billion. Vonovia shares fell 4%.
In China, the Shanghai Composite Index jumped 2.4%, its biggest one-day move since October, bringing it to its highest closing level in three months. Spirits giant Kweichow Moutai, mainland China’s most valuable stock, jumped 6%. The country’s currency rose 0.2% to 6.40 yuan per dollar, its highest level in three years.
Japan’s Nikkei 225 rose 0.7%, while in Hong Kong, the Hang Seng rose 1.7%.
Brent crude oil, the world’s benchmark for oil, fell 0.4% to $ 68.12 per barrel. Gold, a typical hedge against inflation, fell 0.1% to $ 1,883 per troy ounce.
Yields on US government bonds have fallen. The yield on the benchmark 10-year US Treasury note fell to 1.593% from 1.608% on Monday. Yields move inversely with prices.
Write to Will Horner at [email protected]
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