(Bloomberg) — U.S. equity futures were little changed as investors digested the latest read on American inflation and assessed bets on timing for the first Federal Reserve rate increases in the pandemic era.
Contracts on the S&P 500 and Nasdaq 100 flatlined as investors waited for the next trading impetus. The Stoxx Europe 600 Index paused after a two-day advance, with technology and miners offsetting declines in travel and leisure and consumer products.
In the premarket, shares in Delta Air Lines Inc. rose more than 2% after the carrier said the omicron variant won’t derail its expectation to remain profitable for the rest of the year, as it released fourth-quarter financial results.
The dollar edged lower as a growing tide of investors bet the world’s reserve currency has reached a peak with rate hikes largely priced-in to the market. The latest inflation reading confirmed consensus bets the Fed will embark on a series of hikes starting in March.
Read more: Sell Dollar for Everything Else Is Echoing Across Trading Rooms
“Markets in 2022 have been volatile as the reality of inflation set in, and this reaction mainly reflects relief that the print did not exceed already lofty expectations,” Geir Lode, head of global equities at the international business of Federated Hermes, said in an email.
Elsewhere, the pound advanced to its highest level since Oct. 29 amid calls for U.K. Prime Minister Boris Johnson to resign over a “bring your own bottle” party at the height of a lockdown meant to stem the first wave of coronavirus infections in 2020.
Read more: Resilient Pound Primed for Surprise Boost From Johnson’s Woes
Bitcoin traded around $44,000 as the inflation numbers rekindled the debate about whether the cryptocurrency is a hedge against rising consumer prices.
Here are some key events this week:
- U.S. initial jobless claims, PPI on Thursday.
- U.S. Senate Banking Committee hearing for Lael Brainard, nominated as Fed vice-chair, on Thursday.
- Richmond Fed President Thomas Barkin, Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans speak on Thursday.
- Bank of Korea policy decision and briefing on Friday.
- Wells Fargo, Citigroup, JPMorgan due to report earnings on Friday.
- U.S. business inventories, industrial production, University of Michigan consumer sentiment, retail sales on Friday.
- New York Fed President John Williams speaks Friday.
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 were little changed as of 7:03 a.m. New York time
- Futures on the Nasdaq 100 were little changed
- Futures on the Dow Jones Industrial Average rose 0.1%
- The Stoxx Europe 600 fell 0.2%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro rose 0.1% to $1.1459
- The British pound rose 0.2% to $1.3725
- The Japanese yen rose 0.1% to 114.52 per dollar
Bonds
- The yield on 10-year Treasuries was little changed at 1.75%
- Germany’s 10-year yield was little changed at -0.06%
- Britain’s 10-year yield was little changed at 1.14%
Commodities
- West Texas Intermediate crude was little changed
- Gold futures fell 0.2% to $1,823.70 an ounce
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
