Stock Futures Edge Lower as Dollar Trades Mixed: Markets Wrap

US equity futures edge lower and the dollar is mixed against its major peers as investors prepare for a busy week of economic data that will help illuminate the path forward for interest rates.

(Bloomberg) — US equity futures edge lower and the dollar is mixed against its major peers as investors prepare for a busy week of economic data that will help illuminate the path forward for interest rates.

Futures contracts for the S&P 500 and Nasdaq 100 both fell in early Asian trading, as did those for benchmarks in Australian and Hong Kong. Those in Japan gained. The yen strengthened versus all except one of its Group-of-10 counterparts.

Monday’s moves follow a muted end to trading last week. Treasury two-year yields, which are more sensitive to the outlook for Federal Reserve policy, rose eight basis points in the week and US stocks ended the week with mild declines.

Swaps market expectations for Fed interest rates to peak the coming weeks before a series of cuts later this year were largely unchanged.

Those forecasts may shift rapidly this week. US GDP data is forecast to reveal slowing growth, while the so-called core PCE deflator, the Fed’s preferred inflation gauge, is expected to show a cooling in prices growth. The central bank’s favored wages gauge is expected to show worker pay accelerated, according to forecasts from Bloomberg Economics.

Elsewhere this week, the euro-area will publish GDP data, and there will be monetary decisions in Sweden and Japan, where new governor Kazuo Ueda is expected to leave policy unchanged in his first meeting at the helm.

Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.2% as of 7:08 a.m. Tokyo time. The S&P 500 ended Friday 0.1% lower
Nasdaq 100 futures fell 0.2%. The Nasdaq 100 rose 0.1% Friday
Nikkei 225 futures rose 0.2%
Hang Seng futures were little changed
S&P/ASX 200 futures fell 0.1%

Currencies

The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.0990
The Japanese yen was little changed at 134.05 per dollar
The offshore yuan was unchanged at 6.8985 per dollar

Cryptocurrencies

Bitcoin fell 0.2% to $27,464.79
Ether was little changed at $1,850.43

Bonds

The yield on 10-year Treasuries advanced four basis points to 3.57%
Australia’s 10-year yield declined three basis points to 3.46%

Commodities

West Texas Intermediate crude fell 0.2% to $77.71 a barrel Friday
Spot gold fell 1.1% to $1,983.06 an ounce Friday

This story was produced with the assistance of Bloomberg Automation.

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