Stocks, equity futures waver; oil extends advance: markets wrap

Asian stocks wavered Wednesday after US equities inched lower as the tussle between economic optimism and inflation concern continues to play out in markets. The dollar ticked up.

Shares in Hong Kong and China retreated, while Japanese stocks outperformed and robust economic figures boosted Australian equities. US and European equity futures were little changed after the S&P 500 closed slightly lower. US manufacturing data topped estimates overnight but also signaled supply shortages and labour constraints.

Oil reached a more than two-year peak, with OPEC+ providing an upbeat demand assessment and the prospect of a speedy return of Iranian barrels waning. Benchmark 10-year US Treasury yields were little changed.

The Turkish lira fell to a record low against the greenback after President Recep Tayyip Erdogan renewed calls for lower interest rates.

Global stocks are looking for fresh catalysts as they hover at record highs. Concerns linger that the recovery from the pandemic will stoke inflation and prompt central banks to pare back policy support earlier than anticipated. Traders await key US payrolls data Friday for a steer on the outlook.

“Investors would see a surge in payrolls growth as a sign that the Fed is more likely to move,” said Lauren Goodwin, portfolio strategist at New York Life Investments.

Federal Reserve Governor Lael Brainard said there are risks on both sides of monetary policy as the US economy surges ahead while millions of people are unemployed.

Here are key events to watch this week:

• Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak Wednesday.
• US employment report for May on Friday.

These are some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 7 a.m. in London. The index fell less than 0.1%.
• Nasdaq 100 contracts were flat. The gauge fell 0.2%.
• Japan’s Topix index added 0.8%.
• Australia’s S&P/ASX 200 rose 1%.
• Hong Kong’s Hang Seng index shed 0.6%.
• China’s Shanghai Composite index fell 0.8%.
• Euro Stoxx 50 futures were 0.1% higher.

Currencies

• The Japanese yen was at 109.69 per dollar, dropping 0.2%.
• The offshore yuan traded at 6.3874 per dollar.
• The Bloomberg Dollar Spot Index rose 0.1%.
• The euro was at $1.2213.

Bonds

• The yield on 10-year Treasuries held at 1.61%.
• Australia’s 10-year yield held at 1.69%.

Commodities

• West Texas Intermediate crude rose 0.4% to $68.02 a barrel.
• Gold was at $1 898.06 an ounce, down 0.1%.