Daily Outlook

U.S. Futures Fluctuate With Dollar; Bonds Decline

U.S. equity futures wavered as investors reviewed expectations for loose monetary policy and mulled the pace of recent gains. Treasuries and European government bonds declined.

S&P 500 futures fluctuated after the index closed at a record high on Tuesday. Software developer Salesforce.com Inc. leaped in the premarket after its revenue and profit easily beat estimates, signaling clients responded to the pandemic by upgrading technology systems. Gains in Germany’s stocks pulled European equities higher as the country extended a program that has kept millions of people from losing their jobs in the region’s biggest economy.

As global economies reopen, investors are focusing on the progress of a coronavirus vaccine while showing cautious optimism about controlling fresh outbreaks. Traders are also awaiting Federal Reserve Chairman Jerome Powell’s speech on Thursday about the central bank’s monetary policy framework review, which is expected to entail a new inflation strategy.

U.S. consumer confidence dropped in August to the lowest since 2014 as Americans grapple with high unemployment and uncertainty about future federal stimulus.

Stocks

Futures on the S&P 500 Index were little changed at 6:43 a.m. New York time.The Stoxx Europe 600 Index gained 0.4%.Germany’s DAX Index rose 0.6%.The MSCI Asia Pacific Index increased 0.1%.

Currencies

The Bloomberg Dollar Spot Index was little changed at 1,171.68.The euro fell 0.2% to $1.1812.The Japanese yen strengthened 0.1% to 106.26 per dollar.The British pound was little changed at $1.3155.

Bonds

The yield on 10-year Treasuries gained three basis points to 0.71%.Germany’s 10-year yield climbed two basis points to -0.41%.Britain’s 10-year yield increased two basis points to 0.286%.

Commodities

West Texas Intermediate crude decreased 0.4% to $43.18 a barrel.Gold weakened 0.4% to $1,919.60 an ounce.

U.S. Futures Fluctuate With Dollar; Bonds Decline: Markets Wrap, Bloomberg, Aug 26

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