Stocks, U.S. Equity Futures Climb; Dollar Declines: Markets Wrap2 min read

(Bloomberg) — Asian stocks climbed along with U.S. and European equity futures Tuesday after another record Wall Street close, weathering signs of weaker economic activity in China.

MSCI Inc.’s Asia-Pacific equity index hit a more than two-week high. Chinese shares lagged the broader benchmark, in part on data signaling that an outbreak of the delta virus variant led to a contraction in the service sector.

S&P 500 and Nasdaq 100 futures rose after the S&P 500 hit an all-time high. Treasuries held gains made since Federal Reserve Chair Jerome Powell’s measured comments on the monetary policy outlook. The dollar dipped.

Oil was steady, with traders assessing the prospect of additional OPEC+ production. Aluminum and nickel advanced as Goldman Sachs Group Inc. raised target prices. In cryptocurrencies, Bitcoin fell to about $47,000.

Global stocks are set for a seventh monthly advance on strong company profits, expanding vaccinations to underpin economic reopening and supportive Fed policies. At the same time, the decline in Treasury yields from a March peak may partly reflect concerns of a slower recovery ahead on risks such as the impact of the delta strain.

“The bond market is getting a little nervous about the economic outlook,” Priya Misra, head of global interest rate strategy at TD Securities, said on Bloomberg Television. But she added the U.S. economy is “strong” and that “by year end, if the economy holds up, which we forecast it will, that’s when we expect rates — especially in the long end — to start to edge higher.”

In the latest U.S. data, pending home sales fell in July. Traders are awaiting key payrolls figures Friday for further guidance on the economy’s strength.

Here are some key events to watch this week:

OPEC+ meeting on output WednesdayEuro zone manufacturing PMI WednesdayU.S. jobs report Friday

For more market analysis read our MLIV blog.

Some of the main moves in markets:

Stocks

S&P 500 futures climbed 0.3% as of 7:02 a.m. in London. The S&P 500 rose 0.4%Nasdaq 100 futures increased 0.4%. The Nasdaq 100 rose 1.1%Japan’s Topix index rose 0.5%Australia’s S&P/ASX 200 index rose 0.5%South Korea’s Kospi added 1.4%Hong Kong’s Hang Seng index rose 0.3%China’s Shanghai Composite index climbed 0.3%

Currencies

The Bloomberg Dollar Spot Index shed 0.2%The euro was at $1.1825The Japanese yen was at 109.83 per dollarThe offshore yuan was at 6.4595 per dollar

Bonds

The yield on 10-year Treasuries held at 1.28%

Commodities

West Texas Intermediate crude was at $69.21 a barrelGold was at $1,817.49 an ounce, up 0.4%

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