US equity futures pointed higher on Tuesday as investor sentiment stabilized. Treasuries retreated after reopening from a holiday.
S&P 500 futures rose 1.65%; Nasdaq 100 futures rose 1.74%; Dow futures rose 1.45%.
The drop in Treasuries took the benchmark 10-year yield to about 3.28%. Further volatility in bonds, under a Federal Reserve intent on sharp interest-rate hikes to tame inflation, could shake global markets anew.
Australian yields increased after central bank Governor Philip Lowe reiterated that further interest-rate hikes likely loom.
The yen remains around a 24-year low against the dollar, sapped by the contrast between a super-dovish Bank of Japan and hawkish Fed.
In commodities, oil gained, while prices for metals like copper are being buffeted by concerns about the demand outlook amid weakening global growth.
St. Louis Fed President James Bullard warned that US inflation expectations could “become unmoored without credible Fed action,” while former Treasury Secretary Lawrence Summers argued that the nation’s jobless rate would need to rise above 5% for a sustained period in order to curb price pressures. Those comments underline the parlous backdrop investors face.
Earlier, European Central Bank President Christine Lagarde restated officials’ intention to raise interest rates in July and September, signaling that concerns over financial-market tensions aren’t derailing the fight against inflation.
Elsewhere, Bitcoin held above $20,000 after a turbulent period for cryptocurrencies.
Comments