U.S. Futures Rise With Stocks as Fed Jitters Ease

U.S. equity futures climbed with European stocks on Monday as markets regained a measure of calm following volatility spurred by the Federal Reserve’s surprise hawkishness. Contracts on the S&P 500 advanced after spending most of the Asia session in the red. The Stoxx 600 Index also rebounded from an earlier loss, with U.K. grocer Wm Morrison Supermarkets Plc surging 32% after rejecting an unsolicited takeover bid, sending shares of peers Tesco Plc and J Sainsbury Plc higher.

Earlier, speculation that faster-than-expected policy tightening by the Federal Reserve would sink the reflation trade spurred caution across markets. The 30-year U.S. Treasury yield dropped below 2% for the first time since February. Asian markets slumped, with the Nikkei 225 down 4% at one point.

Stocks

The Stoxx Europe 600 rose 0.3% as of 10:37 a.m. London timeFutures on the S&P 500 rose 0.5%Futures on the Nasdaq 100 rose 0.6%Futures on the Dow Jones Industrial Average rose 0.6%The MSCI Asia Pacific Index fell 1.5%The MSCI Emerging Markets Index fell 0.8%

Currencies

The Bloomberg Dollar Spot Index fell 0.2%The euro rose 0.3% to $1.1897The Japanese yen rose 0.1% to 110.09 per dollarThe offshore yuan fell 0.2% to 6.4742 per dollarThe British pound rose 0.5% to $1.3878

Bonds

The yield on 10-year Treasuries was little changed at 1.43%Germany’s 10-year yield was little changed at -0.20%Britain’s 10-year yield was little changed at 0.75%

Commodities

Brent crude rose 0.4% to $73.79 a barrelSpot gold rose 1.1% to $1,783.33 an ounce

U.S. Futures Rise With Stocks as Fed Jitters Ease, Bloomberg, Jun 21