U.S. futures decline as stagflation worries linger
BNN Bloomberg
U.S. equity-index futures declined as concerns about slowing growth and persistently high inflation kept investors on the edge.
U.S. equity-index futures declined as concerns about slowing growth and persistently high inflation kept investors on the edge.
Contracts on the S&P 500 Index fell 0.3 per cent after the underlying gauge posted the biggest weekly loss since February. Iron ore to aluminum rallied as a global supply crunch turned commodities into a sellers’ market. Moderna Inc. tumbled in premarket trading as traders dumped vaccine stocks following Merck & Co.’s announcement about an effective COVID-19 drug.
Global markets have taken a risk-off turn as the post-pandemic recovery stalls on supply shortages in everything from semiconductors to coffee. A spreading energy crunch has added to concern elevated inflation will be longer-lasting than policy makers predict. Risks are multiplying at a time investors are bracing for Federal Reserve tapering as early as next month.
“The global chip and energy shortage is getting worse, the inflation is rising, the recovery may be slowing, and that puts central banks between a rock and a hard place,” Ipek Ozkardeskaya, a senior analyst at Swissquote, wrote in a note. “The best they could do is to do nothing, or to tighten their monetary policy to avoid losing control on the economy.”
Oil futures were mixed on Monday amid waning expectations that OPEC+ members will consider boosting output more than planned. Treasury yields edged higher, with the 10-year rate adding three basis points. The dollar was steady, after two days of losses.
