Futures fall, dollar gains on U.S. CPI; Treasuries slip
BNN Bloomberg
S&P 500 index futures dropped and the dollar gained after U.S. inflation exceeded analysts’ estimates, fueling rate-hike expectations in the world’s largest economy. Treasury yields rose.
S&P 500 index futures dropped and the dollar gained after U.S. inflation exceeded analysts’ estimates, fueling rate-hike expectations in the world’s largest economy. Treasury yields rose.
The consumer-price index rose 7.5 per cent in the year through January, data showed Thursday, more than the median estimate of 7.3 per cent. Even before today’s report, money markets were wagering on the largest U.S. interest-rate increase in more than two decades coming in March. They’re also betting the Federal Open Market Committee will tighten rates by almost one percentage point across the next four meetings.
Nasdaq 100 contracts declined and those on the Dow Jones reversed gains even as robust corporate earnings continued to roll in. Twitter Inc. rose in premarket trading after announcing a share buyback and reporting fourth-quarter results that were broadly in line with expectations. Walt Disney Co., The Coca-Cola Co. and Pepsico Inc. also climbed.
The Stoxx Europe 600 index reversed an advanced amid mixed corporate results tinged by inflation concerns. Personal-care heavyweight Unilever Plc dropped after sounding the alarm on cost increases, and L’Oreal SA declined even after reporting record sales, with traders focusing on eroding margins.
Among other results, Delivery Hero SE slumped more than 25 per cent on underwhelming guidance. Siemens AG jumped as much as 7 per cent after reporting better-than-expected earnings, while upbeat reports also lifted the likes of AstraZeneca Plc, Societe Generale SA and Pernod Ricard SA.
Meanwhile, WTI crude advanced above US$90 a barrel and gold hovered near a two-week high on haven demand amid risks from inflation and geopolitical tension. Swedish bonds gained and the krona weakened after the Riksbank refrained from joining the global shift to tighten monetary policy.
