Nasdaq 100, S&P 500 remains flat as inflation report is awaited

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Updated: June 10, 2021 5:37 PM

Traders are waiting to see if the upcoming U.S. inflation print changes perceptions of when the Fed might begin talks about tapering asset purchases.

Stocks, bonds, inflation, U.S. equity, 10-year Treasury yield, indexThe rangebound trading that’s characterized the start of June may be about to get some impetus from progress reports on the global economic recovery.

Bloomberg: U.S. equity-index futures and government bonds were in a holding pattern before a much-awaited inflation report that may provide clues on how long the Federal Reserve’s ultra-accommodative policies will last.

Contracts on the tech-heavy Nasdaq 100 were lower while those on the S&P 500 index were little changed. European stocks drifted lower before the next policy statement from the European Central Bank. Most Asian stocks rose Thursday as U.S.-China talks helped sentiment.

The rangebound trading that’s characterized the start of June may be about to get some impetus from progress reports on the global economic recovery. In addition to the U.S. inflation report and ECB decision Thursday, leaders of Group of Seven nations are gathering in the British seaside village of St. Ives, Cornwall, many of them face-to-face for the first time since coronavirus erupted.

The 10-year Treasury yield briefly traded above 1.5%, pausing a rally that took the benchmark to the lowest since March on Wednesday.

Traders are waiting to see if the upcoming U.S. inflation print changes perceptions of when the Fed might begin talks about tapering asset purchases.

“A new high since the early 1990’s is in the expectations and Treasury yields have been sliding,” according to Steen Jakobsen, chief investment officer at Saxo Bank. “It is difficult to determine how hot the number would have to be on the upside to jolt this market, while a large downside miss would perhaps be more surprising and elicit a larger market reaction in risk appetite.”

Global equities for now are hovering around an all-time high. Meme-stock frenzy and gyrations in cryptocurrencies are among the few sources of pronounced volatility.

In pre-market action, GameStop Corp. shares fell after the company said it planned to offer more shares and disclosed that regulators are investigating trading of its stock. Other retail trader favorites were mixed, with some of the stocks that surged amid the frenzy on Wednesday giving back gains.

Commodities, one of the leading reflation plays, continued to stall. Oil erased an earlier loss triggered by fears of oversupply. Bitcoin held an advance.

Here are key events to watch this week:

Group of Seven leaders’ summit starts in Cornwall, England Friday.

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 Index climbed 0.1% as of 7:47 a.m. New York time.
The Stoxx Europe 600 Index dipped 0.1%.
The MSCI Asia Pacific Index climbed 0.3%.
The MSCI Emerging Market Index rose 0.4%.

Currencies

The Bloomberg Dollar Spot Index was little changed.
The euro dipped 0.1% to $1.2171.
The British pound slipped 0.1% to $1.4102.
The onshore yuan weakened 0.1% to 6.393 per dollar.
The Japanese yen strengthened 0.1% to 109.52 per dollar.

Bonds

The yield on 10-year Treasuries increased less than one basis point to 1.50%.
The yield on two-year Treasuries was unchanged at 0.15%.
Germany’s 10-year yield rose one basis point to -0.24%.
Japan’s 10-year yield decreased one basis point to 0.055%.
Britain’s 10-year yield gained one basis point to 0.735%.

Commodities

West Texas Intermediate crude climbed 0.1% to $70.05 a barrel.
Brent crude increased 0.3% to $72.43 a barrel.
Gold weakened 0.5% to $1,878.36 an ounce.

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