Futures rise as Europe stocks drop; treasuries dip
BNN Bloomberg
U.S. index futures rallied on Thursday as investors assessed the outlook for monetary policy and the risks posed by the omicron virus variant, with some seeing an opportunity to buy the dip after the S&P 500’s worst two-day slump in more than a year.
U.S. index futures rallied on Thursday as investors assessed the outlook for monetary policy and the risks posed by the omicron virus variant, with some seeing an opportunity to buy the dip after the S&P 500’s worst two-day slump in more than a year.
Contracts on the S&P 500 and Nasdaq 100 advanced, with Boeing Co. jumping in pre-market trading on news Jet Aiways India Ltd. is in talks to upgrade its fleet. Apple declined after telling component suppliers it’s seeing slowing iPhone sales. Moderna Inc. dropped after losing a patent ruling, which could make its COVID-19 vaccine vulnerable to infringement suits.
The Stoxx Europe 600 index fell more than 1 per cent as the week’s see-saw price action extended. Apple’s warning weighed on the tech sector, with index heavyweight ASML Holding NV falling more than 4 per cent. Meanwhile, travel shares were among the worst performers as the omicron variant continued to pop up in countries around the world, including the U.S., Norway, Ireland and South Korea.
Treasury yields rose after a rally that sent the benchmark 30-year rate to the lowest since early January. The dollar slipped against a basket of peers, with investors looking to jobs data later Thursday for more clues on the trajectory of the economy and monetary policy.
Investors are braced for volatility to continue through December, stirred by tightening central-bank policies to fight inflation just as the omicron variant complicates the outlook for the pandemic recovery. The recent market turmoil may offer investors a chance to position for a trend reversal in reopening and commodity trades, according to JPMorgan Chase & Co.
