- US futures rose on Monday amid cautious optimism about recovery.
- Still, investors are keeping a close eye on Europe, where coronavirus cases are on the rise again.
- Elsewhere, oil prices rose after a fall on Friday and the bitcoin resumed its slide.
US stock futures rose on Monday as investors were cautiously optimistic about the economic recovery at the start of a trading week shortened by the Thanksgiving holiday.
S&P 500 futures rose 0.27% as the benchmark index slipped slightly on Friday. Nasdaq 100 futures were up 0.31%, and Dow Jones futures were up 0.25%, indicating a positive start to later trading. US stock markets will be closed on Thursday for Thanksgiving Day and will close early on Friday.
The tone in Europe has been somewhat positive, with investors even weighing the re-imposition of epidemic sanctions by governments as COVID-19 cases escalate. Across the continent, the Stoxx 600 rose 0.16% in early trade.
Overnight in Asia, China’s CSI 300 stock index rose 0.46%, while Tokyo’s Nikkei 225 closed up 0.09%. But Hong Kong’s Hang Seng Index was down 0.39 percent.
Stocks have remained strong even as inflation has reached a 31-year high in the United States and is rising sharply in other developed economies, forcing central banks to consider reducing their stimulus packages.
On Friday, Federal Reserve Vice-Chairman Richard Clarida said the US economy was in a “very strong position”. This raises the possibility that the Fed may begin to reduce its asset purchases more rapidly. Investors will take a closer look at the minutes of the central bank’s November meeting, which is set to be released on Wednesday.
President Joe Biden’s choice for the next Fed chair is also the focus of choice between current Jerome Powell and well-known Pigeon Fed Governor Lille Bernard. Biden is expected to announce his decision this week.
However, cases of the growing corona virus in Europe are increasingly on the radar of investors, who fear that the trend could be replicated worldwide and have an impact on the global economy. Recent restrictions on keeping people at home can affect not only emerging sectors such as hospitality but also holiday shopping as well as business in general.
Germany, Austria, Italy, the Netherlands and Switzerland are among the countries that have enacted strict new laws to stem the fourth wave of the virus. Austria’s fourth lockdown began on Monday, and the country plans to make vaccination compulsory for all citizens.
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Oil futures recovered somewhat on Friday from falling prices, as fears of falling demand in Europe pushed prices lower, signaling that the United States and Japan could accept demands for the release of strategic reserves. ۔
Brent crude rose 0.23 percent to 79 79.11 a barrel on Monday, but fell sharply from its recent high of 86 86 a barrel. WTI crude rose 0.33 percent to 76 76.17 a barrel.
The yield on US bonds, which fluctuates against prices, rose slightly. The yield on key 10-year Treasury notes rose 2.7 basis points to 1.563 percent. The 2-year yield, which is the most sensitive to interest rate changes, rose 2.4 basis points to 0.529%.
The dollar index rose 0.05 percent to 96.08. It has risen sharply in recent months as the Fed publicly weighs in on raising interest rates in 2022.
In the crypto markets, the bitcoin on the bit stamp exchange rose 2.5% to $ 57,423, after returning to about $ 60,000 over the weekend. Analysts say the corrupt market has been affected by a number of factors, including tax changes to President Joe Biden’s infrastructure bill. Negative attention renewed by Chinese authorities; And natural pullback after hitting record heights.