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Markets Wrap: U.S. Futures Rise With Stocks as Treasuries Slip

By Kamaron Leach and Emily Graffeo

U.S. equity futures climbed with stocks on Oct. 12, while inflationary pressures continued to weigh on Treasuries.

Contracts on the three main U.S. gauges were higher, with Johnson & Johnson rising in premarket trading after saying it will split into two companies. European shares edged up as luxury shares gained after Cartier owner Richemont posted better-than-forecast earnings, offsetting a drop in travel stocks. Asian shares climbed, helped by a rally in Japan.

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Photo by Anthony Shkraba from Pexels

Treasuries pared back a selloff after a trading holiday Thursday, with this week’s shock U.S. inflation report still reverberating through the bond market. A gauge of the U.S. yield curve flattened to the least since March 2020.

While global stocks are set for their first weekly drop since early October, their swings have been muted compared with the gyrations in the bond market. Investor focus on a strong earnings season has tempered worries about higher inflation.

“Inflation could remain elevated in the coming months, and each inflation release that comes in above expectations has the potential to cause volatility in rate and equity markets, but we still don’t expect inflation to derail the equity rally,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note.

Elsewhere, the dollar was little changed amid caution triggered by a U.S. warning that Russia may be weighing a potential invasion of Ukraine. 

Oil, gold and Bitcoin slipped.

For more market analysis, read our MLIV blog.

Stocks

  • Futures on the S&P 500 rose 0.3% as of 9 a.m. New York time
  • Futures on the Nasdaq 100 rose 0.3%
  • Futures on the Dow Jones Industrial Average rose 0.3%
  • The Stoxx Europe 600 rose 0.2%
  • The MSCI World index rose 0.1%

Currencies

  • The Bloomberg Dollar Spot Index was little changed
  • The euro was little changed at $1.1445
  • The British pound rose 0.2% to $1.3397
  • The Japanese yen was little changed at 113.97 per dollar

Bonds

  • The yield on 10-year Treasuries was little changed at 1.56%
  • Germany’s 10-year yield declined one basis point to -0.24%
  • Britain’s 10-year yield declined one basis point to 0.91%

Commodities

  • West Texas Intermediate crude fell 1.9% to $80.04 a barrel
  • Gold futures fell 0.4% to $1,856.40 an ounce

More stories like this are available on bloomberg.com.

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