U.S. futures hold gains as Brent hits 3-year high

U.S. equity futures ticked higher Friday, helped by a solid roster of corporate results that helped to quell fears that an inflationary surge will sink growth.

U.S. equity futures ticked higher Friday, helped by a solid roster of corporate results that helped to quell fears that an inflationary surge will sink growth.

Contracts on the S&P 500 were higher in tandem with those on the Nasdaq 100. In Europe, gains were led by banks and energy firms tied to a cyclical upswing. 

Brent oil futures traded near US$85 a barrel amid an energy crunch that’s stoking inflationary pressures and prices for raw materials. A gauge of six industrial metals hit a record high on the London Metal Exchange. 

Solid earnings in the reporting season are tempering fears that rising costs and supply-chain snarls will hit corporate balance sheets and growth. At the same time, the wider debate about whether a stagflation-like backdrop looms remains unresolved.

“We don’t sign up to the stagflation narrative that is doing the rounds,” said Hugh Gimber, global strategist at J.P. Morgan Asset Management. He’s recommending value stocks tied to economic growth. “The economy is being supported by robust consumer balance sheets, rebounding business investment and a healthy labor market.”